lyondellbasell · on august 21, 2018, lyondellbasell completed the acquisition of a. schulman,...
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lyondellbasellcom
ABOUT THIS REPORTIn this report we describe our approach to sustainability We share how we are developing products and solutions for a more sustainable future protecting and investing in our people managing our environmental footprint and demonstrating our commitment to being a responsible good neighbor in the communities where we operate
Data relates to global operations at our majority owned or operated manufacturing sites pipelines and large offices for 2018 unless stated otherwise We report on our sustainability performance on an annual basis Our 2017 Sustainability Report can be found on our website at wwwlyondellbasellcomsustainability
On August 21 2018 LyondellBasell completed the acquisition of A Schulman Inc a leading global supplier of high-performance plastic compounds composites and powders The A Schulman assets are part of our newly formed Advanced Polymer Solutions segment which produces and markets compounding and solutions such as polypropylene compounds engineered plastics masterbatches engineered composites colors and powders and advanced polymers which includes Catalloy and polybutene-1 polyolefin resins The acquisition doubled the size of our existing compounding business
The newly acquired A Schulman sites are included in financial and safety data but are excluded from data related to product safety environmental performance and certain data related to philanthropy and our people Commentary includes Quality Circular Polymers (QCP) our 5050 joint venture recycling facility
More information can be found at wwwlyondellbasellcomsustainability or you may contact us by email at sustainabilitylybcom
TABLE OF CONTENTSAbout this report 2
A message from our CEO 3
Sustainability highlights 4
About our business 5
Our approach to sustainability 8
Advancing sustainable and circular products 15
Plastic waste in the environment 21
Operating safely 24
Reducing our energy use and CO2e impact 31
Developing our performance-driven team 39
Advancing our communities 44
Our performance data 46
Forward-looking information
Certain disclosures in this report may be considered forward-looking statements These are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995 You should read the Cautionary Statement contained in our 2018 Annual Report on Form 10-K in conjunction with such statements
SUSTAINABILITY REPORT 2018 I 3
A MESSAGE FROM OUR CEO
To our stakeholders
I am very proud of the progress we have made since launching our first Sustainability Report in 2017 This is our second annual Sustainability Report and in this report we introduce sustainability goals and highlight achievements within our manufacturing operations and product and technology groups
The chemicals and plastics we produce are used to manufacture end products that make sustainable development possible such as wind turbines and solar panels that produce electricity insulation and roofing materials that reduce energy use in buildings pipes that prevent water leakage and protect the purity of water supplies medical supplies that improve the quality of healthcare packaging that keeps food fresh and safe reducing waste and vehicle components that make cars lighter and more fuel efficient
Additionally plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
We believe customer demand for both
recycled and conventional plastics will continue to grow and we are well-positioned to meet this demand in a responsible manner by
Contributing to the circular economy through investments in plastic recycling technologies
Reducing our greenhouse gas emissions intensity committing to a 15 reduction in carbon dioxide equivalent emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Responsibly managing the environmental impact of our operations committing to zero plastic pellet loss to the environment
Collaborating across the plastics value chain through the Alliance to End Plastic Waste to develop accelerate and deploy solutions to help end plastic waste in the environment
In 2018 LyondellBasell achieved important sustainability milestones including
Improved safety
Achieved a total recordable injury rate of 018 for employees and contractors the
lowest number of total recordable injuries
per hours worked in our companyrsquos history
and one of the top safety records in our
industry
Advancing circular and sustainable products
Built capacity at Quality Circular Polymers
(QCP) our mechanical recycling joint
venture with SUEZ a global leader in
smart sustainable resource management
Invested in research and development to
advance the efficiency and scalability of
molecular recycling a technology that
converts plastic waste into molecules
that can be used as feedstock in the
manufacturing process producing new
plastic from waste instead of fossil fuel
Worked to develop bio-based plastics using
renewable biomass feedstock
Energy and carbon reduction
Implemented energy savings projects at
many of our manufacturing sites reducing
energy use by 35 million gigajoules
Through our joint venture with Covestro
we invested in a circular steam project at
the Maasvlakte site in the Netherlands that
will result in an overall annual reduction of
approximately 140000 metric tons CO2
emissions and 09 petajoule of energy
We are at the beginning stage of our
sustainability journey and we are eager to
learn We will continue to take effective
measurable action and report on our
progress as we work to make a positive
contribution toward a more sustainable
world
Bhavesh V (Bob) Patel
Chief Executive Officer
SUSTAINABILITY REPORT 2018 I 4
SUSTAINABILITY HIGHLIGHTS
Built capacity at our
Quality Circular Polymers recycling
plant and added 33 new circular grades to LyondellBasells product
portfolio
Led the formation of the
Alliance to End Plastic Waste
Reduced emissions to air of nitrogen oxides (NOx) sulfur oxides (SOx)
volatile organic compounds (VOCs) carbon monoxide (CO)
and particulate matter (PM) compared with 2017
Maintained EcoVadis Silver rating placing
us in the top 30 of companies assessed
Achieved a
40 process
safety incident rate improvement compared with 2017
Invested in ground-breaking
molecular recycling research and technology
Announced a Circular Steam Project to
reduce carbon dioxide
(CO2) and waste at our Maasvlakte site in the
Netherlands
Donated more than
17680 volunteer hours
to the community as a part of Global Care Day 2018
Named to Fortune magazines
list of the Worlds Most Admired Companiesrdquo
Achieved our
best safety performance with a total recordable injury rate
of 018
SUSTAINABILITY REPORT 2018 I 5
OUR KEY PRODUCT AREAS
ABOUT OUR BUSINESSLyondellBasell (NYSE LYB) is one of the largest plastics chemicals and refining companies in the world
Driven by its employees around the globe LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food preservation and safety through lightweight and flexible packaging protecting the purity of water supplies through stronger and more versatile pipes improving the safety comfort and fuel efficiency of many of the cars and trucks on the road and ensuring safe and effective functionality in electronics and appliances LyondellBasell sells products into more than 100 countries and is the worlds largest producer of polypropylene compounds and the largest licensor of polyolefin technologies
ADVANCED POLYMERS
Our diverse portfolio is used to create customizable products including
automotive parts
differentiated packaging
electronics appliances
construction materials
roofing
flooring
geomembranes
specialty pipe
CHEMICALSWe produce the chemical building blocks for
automotive fluids
furniture household goods
coatings adhesive cleaners
cosmetics personal care products
POLYMERSOur versatile plastic resins are used to create a variety of products including
automotive parts
packaging
piping
textiles
renewable energy technologies
agricultural films irrigation
healthcare
food supply products
FUELSOur refinery in the US produces
gasoline fuel components
low-sulfur diesel
jet fuel
lubricants
oxyfuels that help improve air quality
TECHNOLOGIESWe license our state-of-the-art manufacturing and process technologies
technologies that are used by chemical and plastics companies around the globe
Morris Illinois
SUSTAINABILITY REPORT 2018 I 6
GLOBAL PRESENCE
USAIllinois
Iowa
Louisiana
Michigan
New Jersey
Ohio
Tennessee
Texas
Houston
Mexico
North America
Brazil
South America
France
Germany
Italy
The Netherlands Rotterdam
Poland
Spain
UK
London
Europe
Saudi Arabia
Middle East
Australia
China
Hong Kong
India
Malaysia
South Korea
Thailand
Asia Pacific
Legend
Administrative OfficesHeadquarters
Manufacturing
Technology Centers
Joint Ventures
Countries where our products are sold(shaded dark blue)
Cincinnati Technology Center Ohio
SUSTAINABILITY REPORT 2018 I 7
1 Reconciliations for our non-GAAP measures can be found beginning on page 161 of the 2018 Annual Report Financial data includes A Schulman from the date of acquisition Remuneration policies and annual compensation of senior executives can be found in our 2018 Proxy Statement
SALES BY REGION
North America
49
Europe31
Latin America
7
Rest of the World
13
EBITDA BY SEGMENT($ in millions)
OampPAmericas
$2762
OampP EAI
$1163
IampD
$2011
APS
$400
Refining
$167Technology
$328Other$36
2016 2017 2018Sales and other operating revenues $29183 $34484 $39004
Operating income $5060 $5460 $5231
Income from equity investments $367 $321 $289
Net income $3837 $4877 $4690
Diluted weighted average share count (millions) 420 399 389
Diluted EPS ($share) $913 $1223 $1201
EBITDA $6602 $7134 $6867
Cash flow from operations $ 5606 $5206 $5471
Capital expenditures $2243 $1547 $2105
2018 FINANCIAL HIGHLIGHTSHIGHLIGHTS OF CONSOLIDATED FINANCIAL STATEMENTS ($ IN MILLIONS)1
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
ABOUT THIS REPORTIn this report we describe our approach to sustainability We share how we are developing products and solutions for a more sustainable future protecting and investing in our people managing our environmental footprint and demonstrating our commitment to being a responsible good neighbor in the communities where we operate
Data relates to global operations at our majority owned or operated manufacturing sites pipelines and large offices for 2018 unless stated otherwise We report on our sustainability performance on an annual basis Our 2017 Sustainability Report can be found on our website at wwwlyondellbasellcomsustainability
On August 21 2018 LyondellBasell completed the acquisition of A Schulman Inc a leading global supplier of high-performance plastic compounds composites and powders The A Schulman assets are part of our newly formed Advanced Polymer Solutions segment which produces and markets compounding and solutions such as polypropylene compounds engineered plastics masterbatches engineered composites colors and powders and advanced polymers which includes Catalloy and polybutene-1 polyolefin resins The acquisition doubled the size of our existing compounding business
The newly acquired A Schulman sites are included in financial and safety data but are excluded from data related to product safety environmental performance and certain data related to philanthropy and our people Commentary includes Quality Circular Polymers (QCP) our 5050 joint venture recycling facility
More information can be found at wwwlyondellbasellcomsustainability or you may contact us by email at sustainabilitylybcom
TABLE OF CONTENTSAbout this report 2
A message from our CEO 3
Sustainability highlights 4
About our business 5
Our approach to sustainability 8
Advancing sustainable and circular products 15
Plastic waste in the environment 21
Operating safely 24
Reducing our energy use and CO2e impact 31
Developing our performance-driven team 39
Advancing our communities 44
Our performance data 46
Forward-looking information
Certain disclosures in this report may be considered forward-looking statements These are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995 You should read the Cautionary Statement contained in our 2018 Annual Report on Form 10-K in conjunction with such statements
SUSTAINABILITY REPORT 2018 I 3
A MESSAGE FROM OUR CEO
To our stakeholders
I am very proud of the progress we have made since launching our first Sustainability Report in 2017 This is our second annual Sustainability Report and in this report we introduce sustainability goals and highlight achievements within our manufacturing operations and product and technology groups
The chemicals and plastics we produce are used to manufacture end products that make sustainable development possible such as wind turbines and solar panels that produce electricity insulation and roofing materials that reduce energy use in buildings pipes that prevent water leakage and protect the purity of water supplies medical supplies that improve the quality of healthcare packaging that keeps food fresh and safe reducing waste and vehicle components that make cars lighter and more fuel efficient
Additionally plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
We believe customer demand for both
recycled and conventional plastics will continue to grow and we are well-positioned to meet this demand in a responsible manner by
Contributing to the circular economy through investments in plastic recycling technologies
Reducing our greenhouse gas emissions intensity committing to a 15 reduction in carbon dioxide equivalent emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Responsibly managing the environmental impact of our operations committing to zero plastic pellet loss to the environment
Collaborating across the plastics value chain through the Alliance to End Plastic Waste to develop accelerate and deploy solutions to help end plastic waste in the environment
In 2018 LyondellBasell achieved important sustainability milestones including
Improved safety
Achieved a total recordable injury rate of 018 for employees and contractors the
lowest number of total recordable injuries
per hours worked in our companyrsquos history
and one of the top safety records in our
industry
Advancing circular and sustainable products
Built capacity at Quality Circular Polymers
(QCP) our mechanical recycling joint
venture with SUEZ a global leader in
smart sustainable resource management
Invested in research and development to
advance the efficiency and scalability of
molecular recycling a technology that
converts plastic waste into molecules
that can be used as feedstock in the
manufacturing process producing new
plastic from waste instead of fossil fuel
Worked to develop bio-based plastics using
renewable biomass feedstock
Energy and carbon reduction
Implemented energy savings projects at
many of our manufacturing sites reducing
energy use by 35 million gigajoules
Through our joint venture with Covestro
we invested in a circular steam project at
the Maasvlakte site in the Netherlands that
will result in an overall annual reduction of
approximately 140000 metric tons CO2
emissions and 09 petajoule of energy
We are at the beginning stage of our
sustainability journey and we are eager to
learn We will continue to take effective
measurable action and report on our
progress as we work to make a positive
contribution toward a more sustainable
world
Bhavesh V (Bob) Patel
Chief Executive Officer
SUSTAINABILITY REPORT 2018 I 4
SUSTAINABILITY HIGHLIGHTS
Built capacity at our
Quality Circular Polymers recycling
plant and added 33 new circular grades to LyondellBasells product
portfolio
Led the formation of the
Alliance to End Plastic Waste
Reduced emissions to air of nitrogen oxides (NOx) sulfur oxides (SOx)
volatile organic compounds (VOCs) carbon monoxide (CO)
and particulate matter (PM) compared with 2017
Maintained EcoVadis Silver rating placing
us in the top 30 of companies assessed
Achieved a
40 process
safety incident rate improvement compared with 2017
Invested in ground-breaking
molecular recycling research and technology
Announced a Circular Steam Project to
reduce carbon dioxide
(CO2) and waste at our Maasvlakte site in the
Netherlands
Donated more than
17680 volunteer hours
to the community as a part of Global Care Day 2018
Named to Fortune magazines
list of the Worlds Most Admired Companiesrdquo
Achieved our
best safety performance with a total recordable injury rate
of 018
SUSTAINABILITY REPORT 2018 I 5
OUR KEY PRODUCT AREAS
ABOUT OUR BUSINESSLyondellBasell (NYSE LYB) is one of the largest plastics chemicals and refining companies in the world
Driven by its employees around the globe LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food preservation and safety through lightweight and flexible packaging protecting the purity of water supplies through stronger and more versatile pipes improving the safety comfort and fuel efficiency of many of the cars and trucks on the road and ensuring safe and effective functionality in electronics and appliances LyondellBasell sells products into more than 100 countries and is the worlds largest producer of polypropylene compounds and the largest licensor of polyolefin technologies
ADVANCED POLYMERS
Our diverse portfolio is used to create customizable products including
automotive parts
differentiated packaging
electronics appliances
construction materials
roofing
flooring
geomembranes
specialty pipe
CHEMICALSWe produce the chemical building blocks for
automotive fluids
furniture household goods
coatings adhesive cleaners
cosmetics personal care products
POLYMERSOur versatile plastic resins are used to create a variety of products including
automotive parts
packaging
piping
textiles
renewable energy technologies
agricultural films irrigation
healthcare
food supply products
FUELSOur refinery in the US produces
gasoline fuel components
low-sulfur diesel
jet fuel
lubricants
oxyfuels that help improve air quality
TECHNOLOGIESWe license our state-of-the-art manufacturing and process technologies
technologies that are used by chemical and plastics companies around the globe
Morris Illinois
SUSTAINABILITY REPORT 2018 I 6
GLOBAL PRESENCE
USAIllinois
Iowa
Louisiana
Michigan
New Jersey
Ohio
Tennessee
Texas
Houston
Mexico
North America
Brazil
South America
France
Germany
Italy
The Netherlands Rotterdam
Poland
Spain
UK
London
Europe
Saudi Arabia
Middle East
Australia
China
Hong Kong
India
Malaysia
South Korea
Thailand
Asia Pacific
Legend
Administrative OfficesHeadquarters
Manufacturing
Technology Centers
Joint Ventures
Countries where our products are sold(shaded dark blue)
Cincinnati Technology Center Ohio
SUSTAINABILITY REPORT 2018 I 7
1 Reconciliations for our non-GAAP measures can be found beginning on page 161 of the 2018 Annual Report Financial data includes A Schulman from the date of acquisition Remuneration policies and annual compensation of senior executives can be found in our 2018 Proxy Statement
SALES BY REGION
North America
49
Europe31
Latin America
7
Rest of the World
13
EBITDA BY SEGMENT($ in millions)
OampPAmericas
$2762
OampP EAI
$1163
IampD
$2011
APS
$400
Refining
$167Technology
$328Other$36
2016 2017 2018Sales and other operating revenues $29183 $34484 $39004
Operating income $5060 $5460 $5231
Income from equity investments $367 $321 $289
Net income $3837 $4877 $4690
Diluted weighted average share count (millions) 420 399 389
Diluted EPS ($share) $913 $1223 $1201
EBITDA $6602 $7134 $6867
Cash flow from operations $ 5606 $5206 $5471
Capital expenditures $2243 $1547 $2105
2018 FINANCIAL HIGHLIGHTSHIGHLIGHTS OF CONSOLIDATED FINANCIAL STATEMENTS ($ IN MILLIONS)1
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 3
A MESSAGE FROM OUR CEO
To our stakeholders
I am very proud of the progress we have made since launching our first Sustainability Report in 2017 This is our second annual Sustainability Report and in this report we introduce sustainability goals and highlight achievements within our manufacturing operations and product and technology groups
The chemicals and plastics we produce are used to manufacture end products that make sustainable development possible such as wind turbines and solar panels that produce electricity insulation and roofing materials that reduce energy use in buildings pipes that prevent water leakage and protect the purity of water supplies medical supplies that improve the quality of healthcare packaging that keeps food fresh and safe reducing waste and vehicle components that make cars lighter and more fuel efficient
Additionally plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
We believe customer demand for both
recycled and conventional plastics will continue to grow and we are well-positioned to meet this demand in a responsible manner by
Contributing to the circular economy through investments in plastic recycling technologies
Reducing our greenhouse gas emissions intensity committing to a 15 reduction in carbon dioxide equivalent emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Responsibly managing the environmental impact of our operations committing to zero plastic pellet loss to the environment
Collaborating across the plastics value chain through the Alliance to End Plastic Waste to develop accelerate and deploy solutions to help end plastic waste in the environment
In 2018 LyondellBasell achieved important sustainability milestones including
Improved safety
Achieved a total recordable injury rate of 018 for employees and contractors the
lowest number of total recordable injuries
per hours worked in our companyrsquos history
and one of the top safety records in our
industry
Advancing circular and sustainable products
Built capacity at Quality Circular Polymers
(QCP) our mechanical recycling joint
venture with SUEZ a global leader in
smart sustainable resource management
Invested in research and development to
advance the efficiency and scalability of
molecular recycling a technology that
converts plastic waste into molecules
that can be used as feedstock in the
manufacturing process producing new
plastic from waste instead of fossil fuel
Worked to develop bio-based plastics using
renewable biomass feedstock
Energy and carbon reduction
Implemented energy savings projects at
many of our manufacturing sites reducing
energy use by 35 million gigajoules
Through our joint venture with Covestro
we invested in a circular steam project at
the Maasvlakte site in the Netherlands that
will result in an overall annual reduction of
approximately 140000 metric tons CO2
emissions and 09 petajoule of energy
We are at the beginning stage of our
sustainability journey and we are eager to
learn We will continue to take effective
measurable action and report on our
progress as we work to make a positive
contribution toward a more sustainable
world
Bhavesh V (Bob) Patel
Chief Executive Officer
SUSTAINABILITY REPORT 2018 I 4
SUSTAINABILITY HIGHLIGHTS
Built capacity at our
Quality Circular Polymers recycling
plant and added 33 new circular grades to LyondellBasells product
portfolio
Led the formation of the
Alliance to End Plastic Waste
Reduced emissions to air of nitrogen oxides (NOx) sulfur oxides (SOx)
volatile organic compounds (VOCs) carbon monoxide (CO)
and particulate matter (PM) compared with 2017
Maintained EcoVadis Silver rating placing
us in the top 30 of companies assessed
Achieved a
40 process
safety incident rate improvement compared with 2017
Invested in ground-breaking
molecular recycling research and technology
Announced a Circular Steam Project to
reduce carbon dioxide
(CO2) and waste at our Maasvlakte site in the
Netherlands
Donated more than
17680 volunteer hours
to the community as a part of Global Care Day 2018
Named to Fortune magazines
list of the Worlds Most Admired Companiesrdquo
Achieved our
best safety performance with a total recordable injury rate
of 018
SUSTAINABILITY REPORT 2018 I 5
OUR KEY PRODUCT AREAS
ABOUT OUR BUSINESSLyondellBasell (NYSE LYB) is one of the largest plastics chemicals and refining companies in the world
Driven by its employees around the globe LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food preservation and safety through lightweight and flexible packaging protecting the purity of water supplies through stronger and more versatile pipes improving the safety comfort and fuel efficiency of many of the cars and trucks on the road and ensuring safe and effective functionality in electronics and appliances LyondellBasell sells products into more than 100 countries and is the worlds largest producer of polypropylene compounds and the largest licensor of polyolefin technologies
ADVANCED POLYMERS
Our diverse portfolio is used to create customizable products including
automotive parts
differentiated packaging
electronics appliances
construction materials
roofing
flooring
geomembranes
specialty pipe
CHEMICALSWe produce the chemical building blocks for
automotive fluids
furniture household goods
coatings adhesive cleaners
cosmetics personal care products
POLYMERSOur versatile plastic resins are used to create a variety of products including
automotive parts
packaging
piping
textiles
renewable energy technologies
agricultural films irrigation
healthcare
food supply products
FUELSOur refinery in the US produces
gasoline fuel components
low-sulfur diesel
jet fuel
lubricants
oxyfuels that help improve air quality
TECHNOLOGIESWe license our state-of-the-art manufacturing and process technologies
technologies that are used by chemical and plastics companies around the globe
Morris Illinois
SUSTAINABILITY REPORT 2018 I 6
GLOBAL PRESENCE
USAIllinois
Iowa
Louisiana
Michigan
New Jersey
Ohio
Tennessee
Texas
Houston
Mexico
North America
Brazil
South America
France
Germany
Italy
The Netherlands Rotterdam
Poland
Spain
UK
London
Europe
Saudi Arabia
Middle East
Australia
China
Hong Kong
India
Malaysia
South Korea
Thailand
Asia Pacific
Legend
Administrative OfficesHeadquarters
Manufacturing
Technology Centers
Joint Ventures
Countries where our products are sold(shaded dark blue)
Cincinnati Technology Center Ohio
SUSTAINABILITY REPORT 2018 I 7
1 Reconciliations for our non-GAAP measures can be found beginning on page 161 of the 2018 Annual Report Financial data includes A Schulman from the date of acquisition Remuneration policies and annual compensation of senior executives can be found in our 2018 Proxy Statement
SALES BY REGION
North America
49
Europe31
Latin America
7
Rest of the World
13
EBITDA BY SEGMENT($ in millions)
OampPAmericas
$2762
OampP EAI
$1163
IampD
$2011
APS
$400
Refining
$167Technology
$328Other$36
2016 2017 2018Sales and other operating revenues $29183 $34484 $39004
Operating income $5060 $5460 $5231
Income from equity investments $367 $321 $289
Net income $3837 $4877 $4690
Diluted weighted average share count (millions) 420 399 389
Diluted EPS ($share) $913 $1223 $1201
EBITDA $6602 $7134 $6867
Cash flow from operations $ 5606 $5206 $5471
Capital expenditures $2243 $1547 $2105
2018 FINANCIAL HIGHLIGHTSHIGHLIGHTS OF CONSOLIDATED FINANCIAL STATEMENTS ($ IN MILLIONS)1
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 4
SUSTAINABILITY HIGHLIGHTS
Built capacity at our
Quality Circular Polymers recycling
plant and added 33 new circular grades to LyondellBasells product
portfolio
Led the formation of the
Alliance to End Plastic Waste
Reduced emissions to air of nitrogen oxides (NOx) sulfur oxides (SOx)
volatile organic compounds (VOCs) carbon monoxide (CO)
and particulate matter (PM) compared with 2017
Maintained EcoVadis Silver rating placing
us in the top 30 of companies assessed
Achieved a
40 process
safety incident rate improvement compared with 2017
Invested in ground-breaking
molecular recycling research and technology
Announced a Circular Steam Project to
reduce carbon dioxide
(CO2) and waste at our Maasvlakte site in the
Netherlands
Donated more than
17680 volunteer hours
to the community as a part of Global Care Day 2018
Named to Fortune magazines
list of the Worlds Most Admired Companiesrdquo
Achieved our
best safety performance with a total recordable injury rate
of 018
SUSTAINABILITY REPORT 2018 I 5
OUR KEY PRODUCT AREAS
ABOUT OUR BUSINESSLyondellBasell (NYSE LYB) is one of the largest plastics chemicals and refining companies in the world
Driven by its employees around the globe LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food preservation and safety through lightweight and flexible packaging protecting the purity of water supplies through stronger and more versatile pipes improving the safety comfort and fuel efficiency of many of the cars and trucks on the road and ensuring safe and effective functionality in electronics and appliances LyondellBasell sells products into more than 100 countries and is the worlds largest producer of polypropylene compounds and the largest licensor of polyolefin technologies
ADVANCED POLYMERS
Our diverse portfolio is used to create customizable products including
automotive parts
differentiated packaging
electronics appliances
construction materials
roofing
flooring
geomembranes
specialty pipe
CHEMICALSWe produce the chemical building blocks for
automotive fluids
furniture household goods
coatings adhesive cleaners
cosmetics personal care products
POLYMERSOur versatile plastic resins are used to create a variety of products including
automotive parts
packaging
piping
textiles
renewable energy technologies
agricultural films irrigation
healthcare
food supply products
FUELSOur refinery in the US produces
gasoline fuel components
low-sulfur diesel
jet fuel
lubricants
oxyfuels that help improve air quality
TECHNOLOGIESWe license our state-of-the-art manufacturing and process technologies
technologies that are used by chemical and plastics companies around the globe
Morris Illinois
SUSTAINABILITY REPORT 2018 I 6
GLOBAL PRESENCE
USAIllinois
Iowa
Louisiana
Michigan
New Jersey
Ohio
Tennessee
Texas
Houston
Mexico
North America
Brazil
South America
France
Germany
Italy
The Netherlands Rotterdam
Poland
Spain
UK
London
Europe
Saudi Arabia
Middle East
Australia
China
Hong Kong
India
Malaysia
South Korea
Thailand
Asia Pacific
Legend
Administrative OfficesHeadquarters
Manufacturing
Technology Centers
Joint Ventures
Countries where our products are sold(shaded dark blue)
Cincinnati Technology Center Ohio
SUSTAINABILITY REPORT 2018 I 7
1 Reconciliations for our non-GAAP measures can be found beginning on page 161 of the 2018 Annual Report Financial data includes A Schulman from the date of acquisition Remuneration policies and annual compensation of senior executives can be found in our 2018 Proxy Statement
SALES BY REGION
North America
49
Europe31
Latin America
7
Rest of the World
13
EBITDA BY SEGMENT($ in millions)
OampPAmericas
$2762
OampP EAI
$1163
IampD
$2011
APS
$400
Refining
$167Technology
$328Other$36
2016 2017 2018Sales and other operating revenues $29183 $34484 $39004
Operating income $5060 $5460 $5231
Income from equity investments $367 $321 $289
Net income $3837 $4877 $4690
Diluted weighted average share count (millions) 420 399 389
Diluted EPS ($share) $913 $1223 $1201
EBITDA $6602 $7134 $6867
Cash flow from operations $ 5606 $5206 $5471
Capital expenditures $2243 $1547 $2105
2018 FINANCIAL HIGHLIGHTSHIGHLIGHTS OF CONSOLIDATED FINANCIAL STATEMENTS ($ IN MILLIONS)1
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 5
OUR KEY PRODUCT AREAS
ABOUT OUR BUSINESSLyondellBasell (NYSE LYB) is one of the largest plastics chemicals and refining companies in the world
Driven by its employees around the globe LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food preservation and safety through lightweight and flexible packaging protecting the purity of water supplies through stronger and more versatile pipes improving the safety comfort and fuel efficiency of many of the cars and trucks on the road and ensuring safe and effective functionality in electronics and appliances LyondellBasell sells products into more than 100 countries and is the worlds largest producer of polypropylene compounds and the largest licensor of polyolefin technologies
ADVANCED POLYMERS
Our diverse portfolio is used to create customizable products including
automotive parts
differentiated packaging
electronics appliances
construction materials
roofing
flooring
geomembranes
specialty pipe
CHEMICALSWe produce the chemical building blocks for
automotive fluids
furniture household goods
coatings adhesive cleaners
cosmetics personal care products
POLYMERSOur versatile plastic resins are used to create a variety of products including
automotive parts
packaging
piping
textiles
renewable energy technologies
agricultural films irrigation
healthcare
food supply products
FUELSOur refinery in the US produces
gasoline fuel components
low-sulfur diesel
jet fuel
lubricants
oxyfuels that help improve air quality
TECHNOLOGIESWe license our state-of-the-art manufacturing and process technologies
technologies that are used by chemical and plastics companies around the globe
Morris Illinois
SUSTAINABILITY REPORT 2018 I 6
GLOBAL PRESENCE
USAIllinois
Iowa
Louisiana
Michigan
New Jersey
Ohio
Tennessee
Texas
Houston
Mexico
North America
Brazil
South America
France
Germany
Italy
The Netherlands Rotterdam
Poland
Spain
UK
London
Europe
Saudi Arabia
Middle East
Australia
China
Hong Kong
India
Malaysia
South Korea
Thailand
Asia Pacific
Legend
Administrative OfficesHeadquarters
Manufacturing
Technology Centers
Joint Ventures
Countries where our products are sold(shaded dark blue)
Cincinnati Technology Center Ohio
SUSTAINABILITY REPORT 2018 I 7
1 Reconciliations for our non-GAAP measures can be found beginning on page 161 of the 2018 Annual Report Financial data includes A Schulman from the date of acquisition Remuneration policies and annual compensation of senior executives can be found in our 2018 Proxy Statement
SALES BY REGION
North America
49
Europe31
Latin America
7
Rest of the World
13
EBITDA BY SEGMENT($ in millions)
OampPAmericas
$2762
OampP EAI
$1163
IampD
$2011
APS
$400
Refining
$167Technology
$328Other$36
2016 2017 2018Sales and other operating revenues $29183 $34484 $39004
Operating income $5060 $5460 $5231
Income from equity investments $367 $321 $289
Net income $3837 $4877 $4690
Diluted weighted average share count (millions) 420 399 389
Diluted EPS ($share) $913 $1223 $1201
EBITDA $6602 $7134 $6867
Cash flow from operations $ 5606 $5206 $5471
Capital expenditures $2243 $1547 $2105
2018 FINANCIAL HIGHLIGHTSHIGHLIGHTS OF CONSOLIDATED FINANCIAL STATEMENTS ($ IN MILLIONS)1
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 6
GLOBAL PRESENCE
USAIllinois
Iowa
Louisiana
Michigan
New Jersey
Ohio
Tennessee
Texas
Houston
Mexico
North America
Brazil
South America
France
Germany
Italy
The Netherlands Rotterdam
Poland
Spain
UK
London
Europe
Saudi Arabia
Middle East
Australia
China
Hong Kong
India
Malaysia
South Korea
Thailand
Asia Pacific
Legend
Administrative OfficesHeadquarters
Manufacturing
Technology Centers
Joint Ventures
Countries where our products are sold(shaded dark blue)
Cincinnati Technology Center Ohio
SUSTAINABILITY REPORT 2018 I 7
1 Reconciliations for our non-GAAP measures can be found beginning on page 161 of the 2018 Annual Report Financial data includes A Schulman from the date of acquisition Remuneration policies and annual compensation of senior executives can be found in our 2018 Proxy Statement
SALES BY REGION
North America
49
Europe31
Latin America
7
Rest of the World
13
EBITDA BY SEGMENT($ in millions)
OampPAmericas
$2762
OampP EAI
$1163
IampD
$2011
APS
$400
Refining
$167Technology
$328Other$36
2016 2017 2018Sales and other operating revenues $29183 $34484 $39004
Operating income $5060 $5460 $5231
Income from equity investments $367 $321 $289
Net income $3837 $4877 $4690
Diluted weighted average share count (millions) 420 399 389
Diluted EPS ($share) $913 $1223 $1201
EBITDA $6602 $7134 $6867
Cash flow from operations $ 5606 $5206 $5471
Capital expenditures $2243 $1547 $2105
2018 FINANCIAL HIGHLIGHTSHIGHLIGHTS OF CONSOLIDATED FINANCIAL STATEMENTS ($ IN MILLIONS)1
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 7
1 Reconciliations for our non-GAAP measures can be found beginning on page 161 of the 2018 Annual Report Financial data includes A Schulman from the date of acquisition Remuneration policies and annual compensation of senior executives can be found in our 2018 Proxy Statement
SALES BY REGION
North America
49
Europe31
Latin America
7
Rest of the World
13
EBITDA BY SEGMENT($ in millions)
OampPAmericas
$2762
OampP EAI
$1163
IampD
$2011
APS
$400
Refining
$167Technology
$328Other$36
2016 2017 2018Sales and other operating revenues $29183 $34484 $39004
Operating income $5060 $5460 $5231
Income from equity investments $367 $321 $289
Net income $3837 $4877 $4690
Diluted weighted average share count (millions) 420 399 389
Diluted EPS ($share) $913 $1223 $1201
EBITDA $6602 $7134 $6867
Cash flow from operations $ 5606 $5206 $5471
Capital expenditures $2243 $1547 $2105
2018 FINANCIAL HIGHLIGHTSHIGHLIGHTS OF CONSOLIDATED FINANCIAL STATEMENTS ($ IN MILLIONS)1
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
OUR APPROACH TO SUSTAINABILITYFor LyondellBasell sustainability means advancing solutions to address global challenges while meeting our stakeholdersrsquo needs and the highest operational standards Our commitment to society and the environment is embedded in our company vision to be the best operated and most valued company in our industry today and tomorrow
We have a relentless focus on the safety of our people products operations and the environment We strive for zero incidents and seek ways to improve energy efficiency and reduce resource use We maintain comprehensive programs designed to protect the health and safety of our people prevent process
safety incidents and carefully steward our products We believe plastic waste should not enter our rivers and oceans and we are investing in technologies and collaborating with industry partners to find solutions
Our business is dependent on the trust of the communities in which we operate We are committed to being a responsible good neighbor and contribute to philanthropic causes across the globe
We believe that through collaboration with our employees customers suppliers community stakeholders investors and shareholders we can make a positive contribution toward a more sustainable world
Wesseling GermanySUSTAINABILITY REPORT 2018 I 8
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 9
OUR SUSTAINABILITY OBJECTIVESIn 2018 we advanced our sustainability efforts in three key focus areas sustainable and circular products plastic waste in the environment and climate change Our company sustainability objectives are outlined below and specific goals are discussed in the relevant chapters of the report
PLASTIC WASTE IN THE ENVIRONMENT CLIMATE CHANGESUSTAINABLE
AND CIRCULAR PRODUCTS
Advance both our mechanical and molecular recycling technologies integrating recycled and circular products into our mainstream business portfolios
Achieving sustainable consumption and production patterns requires a focus on circularity Plastic plays a significant role in the transition to a sustainable and resource-efficient future We are contributing to a more circular economy through investments in recycling technologies innovation and collaboration in product design and the integrated use of waste streams
Zero plastic pellet loss to the environment from our facilities
Plastic waste has no place in the environment and this includes the loss of pellets from manufacturing storage and transportation facilities We continuously improve our handling of plastic pellets and work with our transportation partners to achieve our goal
Develop and deploy meaningful solutions through our leadership role in the Alliance to End Plastic Waste (AEPW)
Through our work with AEPW we are creating effective waste infrastructure in developing countries investing in innovation to advance and scale new technologies that minimize waste and increase recycling and recovery educating stakeholders to mobilize action and cleaning concentrated areas of plastic waste already in the environment
Achieve a 15 reduction in carbon dioxide equivalent (CO2e) emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
We recognize the global impact of climate change as a critical challenge both now and for future generations Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste In our supply chain we are exploring low-carbon transportation solutions
Through its safe ethical and transparent business operations LyondellBasell applies sustainable principles across its business to achieve industry-leading performance The Board of Directors support the companyrsquos continued investments in circular solutions and its positive role in addressing the issues of climate change and plastic waste in our environment We believe the company is well-positioned to deliver value to stakeholders while protecting the interests of future generations
Jagjeet S BindraLyondellBasell Board of Directors and Chairman of the Board Health Safety Environmental amp Operations Committee
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 10
SAFETYGoalZERO is our commitment to operating safely and with zero incidents zero injuries and zero accidents This core company value is the guiding principle for our Health Safety and Environment (HSE) function
We cultivate a GoalZERO mindset with clear standards regular communication training and targeted campaigns and events including our annual Global Safety Day
Health safety and environment indicators are monitored continuously using a performance dashboard Every manufacturing site sets goals to improve process safety and the safety of our people and reduce environmental incidents
OPERATIONAL EXCELLENCEOperational Excellence is the framework we use to deliver our GoalZERO objectives It is our management system designed to deliver safety environmental responsibility and reliability in everything we do It sets out clear requirements for how we work and applies to our employees and contractors
The Operational Excellence management system contains nine key elements that help identify and manage risks and ensure our employees and contractors understand their roles and responsibilities It is further supported by detailed standards and preferred practices that support our GoalZERO objectives
We conduct internal audits at our manufacturing sites to verify compliance with Operational Excellence standards and perform periodic reviews to drive continuous improvement
RESPONSIBLE CAREreg
We are a member of the voluntary chemical sector initiative Responsible Carereg which aims to improve the environmental health safety and security performance of our industry
We implement the principles of Responsible Carereg across our operations every day through our commitment to GoalZERO
THROUGH GOALZERO WE AIM FOR Zero injuries
Zero process safety incidents
Zero product safety incidents
Zero environmental incidents
Zero plastic pellet loss to the environment
Altamira Mexico
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
OUR SUSTAINABILITY PRIORITIESOur materiality assessment identifies the sustainability issues most relevant to our stakeholders and business We conduct a materiality assessment every two years and the result of our 2018 assessment is shown in the matrix
In this assessment we evaluated input from leaders across the company and considered our impacts on the economy society and the environment We identified 15 issues that are the most important to our stakeholders and business As a result we stepped up activities around sustainable and circular products plastic waste in the environment and climate change while keeping our focus on health and safety and continuing to create value for stakeholders
We will engage additional internal and external stakeholders to test the results of our materiality assessment and further support development of our sustainability strategy and approach
BUSI
NES
S IM
PACT
STAKEHOLDER INTEREST
MATERIALITY MATRIX
SUSTAINABILITY REPORT 2018 I 11
1 2 3 4 5
1
2
3
4
5
These are the top 15 issues most relevant to our stakeholders and business
MATERIALITY ISSUE DEFINITIONS
Biodiversity and Land Working to protect plant and animal species genetic diversity and natural ecosystems that provide clean water and air and contribute to food security human health and local livelihoods Working to protect land from contamination and remediating historical contamination
Clean Air Working to reduce emissions of air pollutants from our operations
Climate Change Working to reduce greenhouse gas emissions and contributing to the mitigation of and adaptation to the negative effects of climate change Working to use energy more efficiently and investing in renewable energy sources that lower the overall environmental footprint
Community Development Taking action to minimize and mitigate adverse community impacts and identifying opportunities to enhance positive impacts on the community including local job creation societal participation and philanthropic activities
Effluents and Waste Working to reduce the generation of industrial effluents and wastes for disposal and reducing spills of chemicals oils fuels and other substances
Employee Engagement Building an engaged talented workforce by developing skill sets supporting diversity and ensuring fair employment and work practices
Health and Safety Ensuring the health and safety of our workers and safety of our operations
Human Rights Respecting and promoting human rights throughout our operations and supply chain Acting in the spirit of internationally recognized social and ethical standards
Plastic Waste in the Environment Working to prevent the release or escape of plastic waste to the environment
Product Responsibility Working to ensure the safety and quality of LyondellBasell products (from manufacture and use to end of life) through risk management and promoting responsible product use
Socioeconomic Value Creation Creating economic value for LyondellBasell stakeholders including shareholders employees customers suppliers communities and society
Sustainable and Circular Products Delivering products that support sustainability and the circular economy by keeping resources at their highest utility level for as long as possible extracting the maximum value from them while in use then recovering and regenerating products and materials at the end of life
Sustainable Procurement Working to ensure our purchased goods are manufactured by suppliers that uphold our social environmental and ethical standards
Transparent and Responsible Business Practices Demonstrating integrity and adherence to responsible business practices expected by the marketplace stakeholders and international standards
Water Use Working to reduce withdrawal and consumption of water
A K
L
M
N
O
E
F
G
H
I
J
B
C
D
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 12
SUSTAINABILITY AND HSE GOVERNANCEResponsibility for sustainability ultimately lies with our CEO and the senior leadership team with oversight by the LyondellBasell Board of Directors The Health Safety Environmental and Operations (HSEampO) Committee of the Board reviews health safety and environmental policies and performance our sustainable development initiatives and Operational Excellence results The Committee receives updates on the progress of our sustainability activities at least biannually and reviews the Sustainability Report
Our sustainability program is led by the senior vice president of Research amp Development Technology and Sustainability who reports directly to the CEO The program is executed by the global sustainability director who is responsible for the global sustainability team This team works with the business to advance sustainability initiatives and is responsible for monitoring and reporting our performance The senior leadership teamrsquos sustainability committee comprised of senior executives oversees our sustainability program and provides strategic direction
The vice president of Health Safety and Environment (HSE) leads the global HSE function and reports directly to the CEO The HSE function provides expertise and
leadership for our GoalZERO program and site level HSE managers are responsible for putting GoalZERO into practice every day
The GoalZERO steering team made up of senior manufacturing leaders is responsible for setting operational GoalZERO objectives each year
ETHICS AND COMPLIANCELyondellBasell upholds high ethical standards and is committed to complying with applicable laws and regulations Our global compliance team monitors compliance and works with the business to drive our strong performance in this area This team is overseen by the chief compliance officer The Audit Committee of the Board has ultimate oversight of compliance issues
Our Code of Conduct sets out our expectations on topics such as respecting fellow employees anti-corruption conflicts of interest trade compliance anti-trust and competition law insider trading sanctions misconduct and political donations It is available in 18 languages on our company website New employees are trained on the Code and all employees complete annual refresher training
We also have compliance policies to guide employees in specific areas such as due diligence for mergers and acquisitions and conflict minerals
Shanghai China
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 13
More detailed requirements for the CEO CFO and controller are set out in our Financial Code of Ethics
We encourage employees to speak up if they have any concerns Anyone can raise a concern without fear of retaliation through their manager supervisor or the human resources legal or compliance teams We also offer an independent whistleblower telephone helpline and website available 24-hours a day and in multiple languages It is operated by EthicsPoint a company providing third party reporting for many global companies
MANAGING RISKOur enterprise risk management approach enables us to identify and manage business threats and opportunities and supports the creation and protection of long-term value The Board has oversight of the risk management process supported by the Audit Committee The senior leadership team reviews enterprise-level risks each quarter to monitor progress and stay ahead of changes in our business environment
Risks are also regularly reviewed by business segments and our manufacturing functions with more complex risk analysis undertaken for major projects Additionally the enterprise risk management and financial risk management teams analyze risks when appraising capital investment projects Sustainability-related risks are integrated into this enterprise risk management approach
Identified risks are assigned to a senior leadership team member or business director who is responsible for putting risk management plans in place
TRANSPARENT POLITICAL CONTRIBUTIONS We are committed to high standards of transparency in our advocacy public policy work and political contributions We report US federal state and local lobbying activities and political expenditures as
required by law Every year we disclose direct and indirect corporate political contributions in our US Political Activity Report
PROTECTING HUMAN RIGHTS We recognize we have a responsibility to respect and protect human rights Our Code of Conduct describes our commitment to upholding human rights in all operations and at all facilities
Through GoalZERO we have a comprehensive program to protect the health and safety of our employees and contractors We uphold all fair wage and hours laws wherever we work We never use child forced bonded or involuntary labor and we do not knowingly work with subcontractors or suppliers that do We do not typically have direct relationships with suppliers in countries where human trafficking originates nor where child slavery is prevalent such as those identified in the United Nationsrsquo 2014 Global Report on Trafficking in Persons and the International Labor Organizationrsquos 2015 World Report on Child Labor
We published our first Modern Slavery and Human Trafficking Statement in 2017 following the introduction of the UK Modern Slavery Act 2015 We also comply with the California Transparency in Supply Chains Act of 2010 in the US
Minerals including tin tantalum tungsten and gold known as conflict minerals can be associated with human rights risk if they are sourced from war-torn countries such as the Democratic Republic of Congo We comply with conflict minerals laws and regulations and our Conflict Minerals Policy outlines our approach to sourcing responsibly We outline the risks and report due diligence actions taken to manage risks with our suppliers in our annual Conflict Minerals Report The 2018 Conflict Minerals Report report includes information pertaining to the newly acquired A Schulman sites
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
STAKEHOLDER ENGAGEMENTWe recognize our success depends on building relationships with our stakeholders We engage with internal and external stakeholders through formal and informal channels and we have long-standing memberships in industry associations The table below provides an overview of how we engage with key stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
Customers We regularly speak with customers to improve our products and respond to their needs Customer surveys help us identify ways to improve our products and customer service Our sales representatives and technical experts work closely with customers to address concerns and provide product stewardship guidance Customers regularly visit our manufacturing sites to review our operations and observe our compliance with international standards such as ISO and International Automotive Task Force (IATF) and applicable laws and regulations
Employees Employees are in regular dialogue with managers and we gather employee feedback through a company-wide employee survey every two years Employee-wide communications include a monthly e-newsletter and video news updates quarterly newsletters at the major manufacturing sites and social media updates Senior leaders communicate with employees through various online and face-to-face channels including town hall events and regular site visits Employees can anonymously report concerns at any time through EthicsPoint our third-party ethics helpline
Investors and shareholders
We communicate relevant information to shareholders and prospective investors on our website and we hold a formal investor engagement day every two years We regularly participate in key investor conferences and make these presentations available to all stakeholders on the company website
Local communities We meet with community members where we operate to share information about the company and listen to concerns We do this at many of our manufacturing sites through community advisory groups We also hold site tours for community leaders educational institutions and the public Through our philanthropic program and annual Global Care Day the company and our employee volunteers have a positive impact on hundreds of communities across the world
Industry associations
We collaborate with industry and value chain partners to advance sustainable solutions We belong to approximately 150 industry associations worldwide most of which are in the US and Europe Senior executives and more than 230 employees participate in industry association boards committees and working groups
Government and regulators
We communicate with government legislative and regulatory officials through issue-specific meetings industry events and visits to our sites We respond to public consultations to provide input and share expertise on future legislation
Suppliers We regularly engage with our suppliers to achieve our GoalZERO ambitions with a particular focus on people product and process safety For example we support contractors with comprehensive safety training at sites and hold annual contractor HSE forums where our CEO participates
SUSTAINABILITY REPORT 2018 I 14
SENIOR EXECUTIVE ENGAGEMENT IN SUSTAINABILITY THROUGH INDUSTRY ASSOCIATIONS Bob Patel ndash Chairman of American
Chemistry Council Board and member of the Board Global Strategy Committee and Board Sustainability Committee Vice Chairman of the Alliance to End Plastic Waste
Jim Seward ndash Chairman of the World Plastics Council
Richard Roudeix ndash Board and Executive Committee of Cefic and Chairman of its Climate Change and Energy Programme Council Steering Board of PlasticsEurope Board of European Petrochemical Association
Paul Augustowski ndash Board of Directors for the Plastics Industry Association Chairman of the American Chemistry Councilrsquos Plastics Division Operating Committee
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
Samsonite SCure ECO Collection
ADVANCING SUSTAINABLE AND CIRCULAR PRODUCTSLyondellBasell products materials and technologies are found in nearly every sector of
the economy and help address modern challenges including access to clean water food
safety and distribution and quality healthcare We believe chemicals and plastics provide
innovative solutions that improve quality of life and contribute to a more sustainable world
CIRCULAR ECONOMY INITIATIVESIn a circular economy resources remain
in use for as long as possible to maximize
their value Repeatedly reusing and recycling
materials through the value chain can
reduce energy and resource consumption
contributing to a low-carbon economy
Our circular economy initiatives include
Collaborating with customers and the
value chain to enhance the recyclability of
products and materials through improved
design material composition and product
properties
Investing in the mechanical recycling of
plastics to convert post-consumer waste
into high quality recycled plastic resins for
high-end applications
Researching molecular recycling
technology to turn hard-to-recycle plastics
into new feedstocks
Developing new products and applications
that enable reduced resource use such
as polypropylene compounds used to
light-weight automotive parts and our
new Hyperzone PE technology for use in
applications such as industrial drums and
intermediate bulk containers
Exploring the potential to manufacture
certain polymer and chemical products
from renewable biomass substituting
fossil-based resources with bio-based
feedstocks
Improving the efficiency of our
manufacturing processes by improving
yields eliminating wastes and reducing
energy and water consumption
SUSTAINABILITY REPORT 2018 I 15
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 16
Pressure and Sewage PipesOur products make pipes that are lighter and more durable making installation faster and easier reducing water use preventing water leakage and protecting water purity
Wind TurbinesOur products make coatings for wind turbines that reduce drag and extend blade life
InsulationOur products make polystyrene and polyurethane insulation foam for walls roofs and floors conserving energy for heating and cooling buildings
Medical ProductsOur products are used in gloves syringes IV bags hand sanitizer and medicine packaging ensuring sterile and sanitized supplies
Vehicle BiofuelsOur biodiesel and bio-based fuel additives reduce tailpipe emissions and improve fuel efficiency
Vehicle ComponentsOur products are used in high performance fuel systems and applications making car bumpers dashboards and trims lighter and vehicles more fuel-efficient
Leisure andSports EquipmentOur high-performing products are used to create items like playground slides and golf clubs
ElectricalOur flame-retardant products are used in cable insulation and as protective covers for electronic components and appliances
Food PackagingOur products make plastic films and rigid and flexible thin packaging to keep food safe and fresh for longer reducing food waste
Solar PanelsOur products create wire and cable casings that conduct power and secure solar panels
Agricultural IrrigationOur products make irrigation more efficient reducing water leakage
Agricultural EquipmentOur fiberglass-reinforced products improve safety and performance for heavy agricultural equipment
FilmsOur products are used for greenhouse structures and stretch wrap packaging
Chemicals Polymers Intermediates FuelsKey
PROCESS INNOVATION TO REDUCE MATERIAL USE WITH HYPERZONEIn 2018 construction continued on our new Hyperzone polyethylene (PE) plant in La Porte Texas The plant is a first-of-its-kind facility employing our new proprietary technology Our pilot plant demonstrated that in certain applications the Hyperzone PE technology will enable customers to manufacture lighter weight products without compromising strength ultimately reducing the amount of raw material required The technology was developed by LyondellBasells global research and development teams in Ferrara Italy Frankfurt Germany Cincinnati Ohio and Houston Texas We expect startup of this unit in 2019
OUR PRODUCTS ADVANCE SUSTAINABLE SOLUTIONSMany of the chemicals and plastics we supply help create innovative products that meet the needs of modern society and contribute to sustainable development Our products are found in nearly every sector of the economy
La Porte Texas
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 17
THE ROLE OF PLASTICS IN A LOW-CARBON CIRCULAR ECONOMYPlastics are used in a wide range of consumer and industrial applications across almost every sector of the economy Plastic products typically have a lower energy footprint than alternative materials especially in applications such as packaging Lighter packaging reduces the energy needed for transportation and decreases associated carbon emissions
A study by Trucost demonstrates the environmental cost of using plastic in the consumer goods sector is 38 times less than alternative materials needed to replace plastic (such as glass tin aluminum and paper)1 Substituting plastic in consumer products and packaging with alternatives that perform the same function would increase environmental costs associated with production transport material and energy recovery and end of life management
A circular economy for plastics could
significantly reduce environmental costs
by increasing recycling of post-consumer
plastics minimizing landfilling and capturing
the value of recovered materials Recycling
plastics lowers the carbon footprint across
the life cycle further still Trucost estimates
that the environmental cost of plastics could
be reduced by over $79 billion in net terms
if circular economy models were adopted
across Europe and North America
Plastics play a critical role not only in meeting
the needs of modern society but also in the
transition to a circular economy We believe
demand for both recycled and conventional
plastics will continue to grow and
LyondellBasell is positioned to deliver quality
products and advance sustainable solutions
to our customers in a responsible way
1 Trucost and the American Chemistry Council Plastics and Sustainability A valuation of environmental benefits costs and opportunities for continuous improvement 2016
American Chemistry Council100 reuse recycling or recovery of plastic packaging by 2040
2040
100
PlasticsEurope60 reuse and recycling of plastic packaging by 2030
100 reuse recycling or recovery of plastic packaging by 2040
2030
602040
100
PLASTIC PACKAGING COMMITMENTSIncreasing the collection of plastic waste and overall reuse and recycling rates is an important step in developing a circular plastics economy We support the voluntary commitments of PlasticsEurope and the American Chemistry Council to achieve high rates of plastic re-use and recycling
OUR APPROACH TO PUBLIC POLICYWe support public policy that seeks to eliminate plastic waste in the environment reduce marine litter and create markets for recycled plastic while balancing the environmental and social benefits plastics bring We collaborate with our industry partners trade associations and other stakeholders to support the development of appropriate public policy
There are significant challenges to improve reuse and recycling rates and effective policy should support solutions to these challenges These include
Improving sorting technology and infrastructure for waste collection
Better data and understanding of post-consumer plastic waste flows
Enhancing circular design principles and developing new end-of-life options such as molecular recycling for certain types of plastic waste that are hard to recycle
Supporting consumer behavior-change to promote recycling
Preventing plastic littering and achieving zero plastic waste to landfill
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 18
Technology has always been at the heart of our organization and we see innovation as the key in creating opportunity and providing solutions to the most important sustainability challenges of today We are deeply engaged with our customers brand owners and the wider stakeholder community as we collectively seek ways to increase circularity and reduce plastic waste
Jim SewardSenior Vice President Research amp Development Technology amp Sustainability
MECHANICAL RECYCLINGIn 2017 we partnered with SUEZ a global leader in smart sustainable resource management to acquire Quality Circular Polymers (QCP) a premium plastics recycling company located in Sittard-Geleen the Netherlands
QCP uses mechanical recycling technology to transform post-consumer plastic waste into high-quality polymers that can be used to make new products The joint business leverages the two partnersrsquo strengths SUEZ provides leading-edge technology solutions to improve the identification separation and preparation of waste materials used as feedstock LyondellBasell applies its long-
standing leadership in innovative plastic
production technology vast experience in
product and application development and
knowledge of important end markets such
as consumer goods
Throughout 2018 we continued to build
capacity at the QCP plant and by Q2
2019 we added 33 new circular grades
to LyondellBasells product portfolio We
also responded to customer demand to
develop new colors of recycled high-density
polyethylene (HDPE) and we helped bring
to market consumer products with recycled
content in a number of sectors
OUR GOALS
Increase the recycling capacity of the existing QCP plant to 50000 tons by 2021
Expand the number of end-use applications
Seek opportunities to grow mechanical recycling in other parts of the world
Develop a new polyolefin product range containing recycled content QCP ndash Sittard-Geleen the Netherlands
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 19
PRODUCTS MADE WITH QCP MATERIALS
UNILEVER SAMSONITE MAUSER PACKAGING SOLUTIONS
Unilever used QCP materials in its new packaging for Dove and Axe products in the European market
ldquoWe are transforming our approach to plastic packaging with a simple strategy called lsquono less better plasticrsquo By using QCPrsquos recycled plastic in our packaging we adhere to our lsquobetter plasticrsquo ambition of achieving 100 fully reusable recyclable or compostable plastic packaging by 2025 When we do use plastic we make sure it stands the best possible chance of being recycled and use as much of that recycled material again and again to create a fully circular modelrdquoHanneke Faber President Foods amp Refreshment and member of the Executive Board Unilever
Samsonitersquos SCure ECO suitcase is made from post-consumer recycled plastic The QCP polypropylene grade used for the suitcase shell delivers high impact resistance even at low temperatures meeting the demands of high quality luggage
ldquoNew sustainable materials play a key role in reducing our environmental footprint across our operations allowing us to combine our thirst for innovation with our commitment to sustainability We want to maximize the use of recycled and recyclable materials in our products in order to pass on a better world for generations to comerdquoChristine Riley Miller Global Director of Sustainability Samsonite
Mauserrsquos medical waste container made from 100 recycled plastic meets strict regulatory standards to handle healthcare waste in hospitals
ldquoWe collaborated with Quality Circular Polymers to develop this innovative high-quality post-industrial resin that we can use to manufacture a range of industrial packaging with a significantly lower carbon footprintAxel Schaefer Head of Product Management Mauser Packaging Solutions
RECYCLED PLASTIC BOTTLES USED TO MAKE ADVANCED POLYMER COMPOUNDSWe are exploring the use of recycled plastics in every area of our business This includes our compounding division Advanced Polymer Solutions
Schuladurreg PCR is a thermoplastic polyester compound we offer customers in the automotive industry It is extremely strong because the polymer matrix is reinforced with glass fiber The product also has up to 50 recycled polyethylene terephthalate (PET) content from post-consumer plastic bottles The recyclate-based compound is of equivalent quality to conventional material and is used in automobile ignition systems and exterior parts
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 20
BIO-BASED FEEDSTOCKS AND BIOFUELS
In 2018 we began developing bio-based
feedstocks as an alternative to feedstocks
from non-renewable fossil-derived
resources In June 2019 LyondellBasell
introduced Circulen grades of bio-based
polypropylene and low-density polyethylene
made from renewable biomass
Circulen products are sold using mass
balance-based certificates while Circulen
Plus offers measurable bio-content which
can be determined by carbon-14 analysis
and stated as a parameter on the Certificate
of Analysis
We also produce biofuels for gasoline
Our ethyl-tert-butyl-ether (ETBE) is a
clean burning gasoline component that improves fuel efficiency and reduces tailpipe emissions ETBE is partly made from renewable feedstocks which means it has a lower greenhouse gas impact across its life cycle from raw material production to use compared with fossil-based gasoline In 2018 use of LyondellBasellrsquos ETBE gasoline in Japan and Europe reduced global CO2 emissions by more than 16 million metric tons based on its renewable content Additional reductions were likely achieved from higher fuel efficiency and energy savings at refineries and in the supply chain LyondellBasell is certified by the International Sustainability and Carbon Certification (ISCC) as a producer of sustainable biofuel ETBE
OUR GOALS
Carry out a successful PPPE commercial campaign using waste oils derived from biomass in 2019
MOLECULAR RECYCLING TECHNOLOGYNot all plastic waste is readily suited to mechanical recycling Waste products with complex layers of multiple plastics or those blended or contaminated with other materials can be difficult and costly to recycle Furthermore mechanically recycled plastics may not be suitable for some applications in the food and medical sectors
We are applying our vast knowledge of catalysts to explore molecular recycling technology (also called chemical recycling) as a complementary technique to traditional mechanical recycling Molecular recycling is an emerging technology that converts plastic waste into molecules that can be used as feedstock in the manufacturing process producing new plastic from plastic waste instead of fossil fuel
In the molecular recycling process plastic waste is treated and broken down into its basic chemical building blocks The resulting chemicals can be used to make new polymer
resins for use in all applications including
food packaging and medical supplies
In 2018 we announced a partnership with
the Karlsruhe Institute of Technology (KIT)
in Germany to develop a highly improved
molecular recycling process The project
builds on KITrsquos world-leading research
infrastructure and LyondellBasellrsquos expertise
in developing manufacturing and selling
advanced catalyst systems Together
we are researching the use of pyrolysis
as a potential technology to process and
chemically recycle plastic waste
Over the past two years LyondellBasell
screened hundreds of potential catalyst
systems using model polymers at our
RampD sites Our catalyst-based technology
solution MoReTec improves the
depolymerization process making the
molecular recycling of plastic waste at a
commercial scale possible
OUR GOALS
By 2021 develop optimum process conditions to make the MoReTec technology scalable to a semi-industrial proof-of-concept plant
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
WORKING TO END PLASTIC WASTE IN THE ENVIRONMENTWe recognize plastic waste is a significant
global challenge and it is unacceptable for
it to enter our rivers and oceans
We are proud to participate in initiatives
across our industry and wider value
chain that address this concern through
the reduction recycling reuse and
repurposing of plastic waste We were one
of the driving forces behind the formation
of the Alliance to End Plastic Waste the
first global cross-value chain initiative
dedicated to eliminating plastic waste in
the environment
In our own operations we continue to
target zero pellet loss to the environment
and are working to increase recycling of
our post-industrial waste We are also
engaging our employees in waste clean
up projects at local beaches waterways
and parks
ldquoHistory has shown us that collective action and partnerships between industry governments and NGOs can deliver innovative solutions to a global challenge like this The issue of plastic waste is seen and felt all over the world It must be addressed and we believe the time for action is nowrdquo
Bob PatelCEO LyondellBasell and Vice Chairman Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 21
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 22
LyondellBasell is a founding member of the Alliance to End Plastic Waste (AEPW) a major new initiative spanning the entire plastics value chain This CEO-led cross-sector not-for-profit coalition has a clear mission to develop accelerate and deploy solutions catalyze public and private investment and engage communities to help end plastic waste in the environment
The AEPW is the first international coalition of chemical and plastics manufacturers
converters consumer goods companies
retailers and waste management companies
dedicated to partnering with the finance
community government and environmental
and economic development NGOs to find
market-based solutions
Initial projects are focused in countries
where waste collection and management
have not kept pace with growing populations
and burgeoning economies
Creating infrastructure to collect and manage waste and increase recycling especially in developing countries
Innovation to advance and scale new technologies that minimize waste make recycling and recovering plastics easier and create value from all post-use plastics
Education and engagement of governments at all levels businesses and communities to mobilize action
Clean up of concentrated areas of plastic waste already in the environment particularly the major conduits of waste like rivers that carry land-based plastic waste to the sea
THE ALLIANCE IS TAKING ACTION IN FOUR AREAS
LyondellBasell CEO Bob Patel (far right) joined World Business Council for Sustainable Development CEO Peter Bakker Procter amp Gamble CEO David Taylor and Veolia CEO Antoine Freacuterot in announcing the formation of the Alliance to End Plastic Waste
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 23
OUR GOALS
Meet Operation Clean Sweep Blue requirements in the US by 2020 and implement a similar approach at our European sites through PlasticsEurope
Begin reporting pellet loss to the environment in our 2020 Sustainability Report
PREVENTING PELLET LOSS IN OUR OPERATIONSWe are a member of Operation Clean Sweepreg (OCS) the plastics industry initiative aimed at preventing pellet loss In 2018 we committed to the more rigorous American Chemistry Councilrsquos OCS Blue program which requires members to demonstrate an enhanced commitment to managing and reporting pellet loss We developed OCS best practice guidance and incorporated it into our Operational Excellence management system requiring all sites to evaluate operations and reduce accidental discharge spillage or escape of pellets from production or transportation equipment
Actions taken at our sites include
Implementing programs to identify and eliminate pellets across our sites and capture them before they escape into the environment or waterways
Identifying short and long-term opportunities for continual improvement in reducing polymer loss
Conducting training programs with our employees
Using posters to remind our employees and contractors how to prevent pellet loss along with stickers on pipes and at vulnerable spill points
Providing the right tools for cleanup activities at our plastic pellet cleaning stations
Sharing best practices across our sites and our industry
Educating and supporting our logistics providers and customers to prevent loss during handling and transportation
Morris Illinois
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
OPERATING SAFELYPROTECTING PEOPLE
The safety of people and operations is our top priority Our safety standards apply to everyone involved in our business including employees contractors and suppliers
We are proud of our industry-leading safety performance In 2018 we improved our excellent safety record with a total recordable injury rate of 018 for employees and contractors the lowest number of total recordable injuries per hours worked in our companyrsquos history This improvement is especially significant given the large number of additional workers on our sites for major turnarounds
Additionally in 2018 14 sites achieved more than one million safe working hours and 31 locations reached at least one year without a recordable injury
Eight sites were recognized for exemplary safety performance in 2018 by the American Fuel and Petrochemical Manufacturers (AFPM) Three sites received the top Distinguished Safety award two were awarded the Elite Gold award and three achieved Silver Elite awards Since 2017 17 of our plants have received AFPM safety awards recognizing industry-leading performance
SUSTAINABILITY REPORT 2018 I 24Victoria Texas
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 25
TOTAL RECORDABLE INJURY RATE (PER 200000 HOURS WORKED)(Employees and contractors)
2014 2015 2016 2017 201800
02
04
06
08
LyondellBasell Total Recordable Injury Rate
American Chemistry Council Industry Average
071
023 022 021 021 018
065
057063 065
Includes A Schulman sites as of August 21 2018
MANAGING SAFETY RISKS Our Operational Excellence program sets out
the standards and management approach
we use to achieve GoalZERO This includes
clear requirements for people process and
product safety
We closely monitor safety risks work quickly
to investigate incidents and near misses and
swiftly take corrective action
In 2018 we strengthened our risk
management approach by piloting electronic
permits to work The e-permits replace
traditional paper permits improving
communication between work crews and
plant operators giving them instant access
to safety instructions and enabling them to
spot potential conflicts in activities Following
a successful pilot during construction of
our Hyperzone plant we are implementing
e-permitting across our sites
Recognizing and mitigating potential
hazards in the workplace is a critical part of
our approach to preventing incidents and
injuries Risk assessments are conducted
for any potentially hazardous work These range from completing safety checklists to a formal documented job hazard analysis process Our approach includes five steps to mitigate risk outlined in our Risk Assessment Preferred Practice policy
Our people undergo specific training to develop the skills to recognize potential hazards and reduce safety risks This includes analyzing risks before any tasks are completed using a pre-task analysis In 2018 we strengthened our approach by developing trainers at each site to integrate hazard recognition techniques and scenario-based training
Sites undergo internal audits to verify compliance with Operational Excellence systems and procedures Lessons learned and best practices are shared across the business Onsite contractors including logistics companies that handle and transport our products are expected to comply with our HSE policies and support GoalZERO
OUR 5 STEPS TO MITIGATE RISK
1 Identify the hazards
2 Decide who might be harmed and how
3 Evaluate the risks and decide on precautions
4 Record findings and implement them
5 Review risk assessment and update if necessary
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 26
EMBEDDING A GOALZERO SAFETY CULTURE Our commitment to GoalZERO is championed at every level of the company Excellent safety culture starts at the top with senior leaders which includes the CEO
Managers at each manufacturing site meet regularly to review safety performance and discuss issues relevant to their plant HSE awareness teams evaluate injuries and find ways to prevent them in the future Safety is also a priority at our office locations where group meetings typically start with a safety message
Embedding our safety culture at our newly-acquired A Schulman sites was a particular focus in 2018 Activities included training in HSE standards and GoalZERO and comprehensive HSE site assessments Additionally each site was assigned a safety mentor from a legacy LyondellBasell site
Beyond our own workforce we rely on thousands of contractors and logistics companies In 2018 we continued to strengthen our GoalZERO partnership with contractors and provided enhanced training to manage turnarounds safely A revised contractor HSE management system standard was developed for roll out in 2019 Quarterly Contractor Safety Forums are also used to review incidents and near misses and share lessons learned
COLLABORATING WITH CONTRACTORS TO IMPROVE SAFETY Personal safety risks can increase during periods of non-routine operation for instance during maintenance or a scheduled turnaround Our new contractor onboarding process is designed to improve safety when additional workers are on site The electronic system together with practical testing screens and tests the competencies and safety awareness of contractor teams before they enter a plant Once on site interactive face-to-face training and further tests complete the process The system was successfully implemented in 2017 in the Netherlands with 2400 contractors during a turnaround at our Botlek site and in 2018 with more than 300 contractors during preparation for the circular steam project at the Maasvlakte site
ldquoPlan-based participation in a complex project such as the Botlek turnaround requires that safety is considered in the same way at all levels LyondellBasellrsquos contractor safety program and on-boarding process ensured everyone was provided with the same and the right knowledge to work clearly and safely during deploymentrdquo
Gijsbert Veldhuizen Operational Manager RBC Netherland BV RBC Group is a leader in fire protectionand industrial and maritime safety and security in Europe
SAFETY TRAINING FOR FRONT LINE SUPERVISORSFront line supervisors play a critical role in identifying and managing safety risks at our plants In 2018 we refreshed the front line supervisor safety training program and introduced an advanced leadership development program which was completed by more than 370 of our front line supervisors in the US
The program includes intensive face-to-face training over a 10-month period where ldquoliverdquo situations simulating safety scenarios test participantsrsquo reactions and decision-making The course teaches communication leadership process safety conflict resolution and team development skills It will be rolled out to front line supervisors in Europe in 2019
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 27I 27 I
IMPROVING HAND SAFETY Hand injuries represented 45 of total injuries in 2017 so we launched a comprehensive campaign to improve hand safety We distributed new gloves that offer a higher level of protection and cut resistance across our sites and asked employees and teams to identify opportunities for improving hand safety behaviors Hand safety was also the focus of our 2018 Global Safety Day As a result of this campaign we reduced hand-related injuries in 2018 by 35 compared with 2017
WORKER HEALTHOur LifeBeats program promotes healthy lifestyle habits and well-being among employees LifeBeats gives our people tools to improve both their physical and mental health and support the well-being of their families Site champions across our operations promote health events and campaigns each year including the annual LifeBeats lsquoStep Up for Healthrsquo walking challenge
We provide a comprehensive medical monitoring service to assess employees exposed or potentially exposed to occupational hazards We focus on prevention by proactively detecting hazards before they affect our people We use regular health screenings to assess individuals and confirm the effectiveness of exposure prevention strategies All employees have access to knowledgeable health professionals so they can raise questions or concerns and gain information on healthy lifestyle habits
Berre lEtang France
La Porte Texas
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 28
ADVANCING PROCESS SAFETY
Operating our plants safely and reliably is a top priority Our process safety program establishes how we safely design operate and maintain our manufacturing processes to prevent or mitigate the unplanned or uncontrolled release of process material This program aims to prevent serious incidents and protect local communities and the environment
We have clear standards for identifying and managing process safety risks within our Operational Excellence framework Regular turnarounds mdash during which we shut down plants and carry out essential maintenance upgrades and safety checks mdash are a key part of our safety program
In 2018 we strengthened our process safety procedures for lsquoline breakrsquo activities where process piping process tubing or other equipment containing hazardous material or stored energy is opened such as during maintenance work A team of specialists from our global manufacturing sites defined a new risk assessment process for planning and executing line break activities The team analyzed potential human failures and identified practices to manage those risks
We also focused on reducing risks associated with combustible dust at the newly acquired A Schulman sites The presence of combustible dust can increase the risk of fire or explosion if not managed properly LyondellBasell applied our established Operational Excellence standards to evaluate and manage these risks
In 2018 we achieved a 40 reduction in process safety incidents compared with 2017 and we continually strive for zero incidents
PROTECTING THE SECURITY OF OUR PEOPLE AND ASSETS
The security of our employees and facilities is critical and we maintain comprehensive security policies and practices We work closely with industry and government agencies to address potential security threats We are equally vigilant about protecting communities close to our sites in the event of a security incident or emergency
PREVENTING AND RESPONDING TO EMERGENCIES
We take seriously our responsibility to prevent incidents that could harm workers the community or the environment We continually evaluate risks and have detailed emergency plans in place LyondellBasell manufacturing sites maintain their own emergency response teams including teams trained to respond to medical incidents fires or releases of hazardous materials
Site workers are trained on the proper procedures to follow in the event of an emergency and regular drills are conducted to test these procedures We also coordinate preparation and planning with local government agencies and emergency responders
2014 2015 2016 2017 2018000
001
002
003
004
Includes A Schulman sites as of August 21 2018
Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact
PROCESS SAFETY INCIDENT RATE
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 29
PROMOTING PRODUCT SAFETY
As the products we manufacture are used in thousands of everyday applications it is critical they be handled and used safely by our employees and customers Our product stewardship program defines our approach
We assess and manage risks at every stage of the product lifecycle from sourcing raw materials to the end use by customers and disposal We also assess products and uses for risk to human health and the environment We track product safety performance review customer feedback and communicate product safety information both internally and externally
We also continuously monitor product end-use applications to anticipate any potential health and safety risks Each year we review the risks associated with emerging applications in our polymer and chemicals business Based on this assessment we may prohibit or place conditions on the sale of products into certain end-use applications We communicate all end-uses that are prohibited or require further review on our external website to ensure complete transparency for customers who purchase our products
A particular focus for product safety in 2018 was the application of product stewardship and chemical safety controls to sustainable and circular products For example our product stewardship team worked closely with our marketing sustainability and RampD teams to review existing and emerging recycling technologies identify challenges and find solutions to facilitate the potential use of recycled plastics in broader end-use applications such as food and cosmetics
We have clear chemical control procedures in place to comply with applicable
regulations and we continually monitor these requirements for changes Relevant regulations include the Toxic Substances Control Act in the US (TSCA) and the European Regulation on Registration Evaluation Authorization and Restriction of Chemicals (REACH) We monitor the movement of materials and we block transactions for materials uses or customers that do not meet our safety requirements
Our global product safety team communicates information about our products to customers Public information we provide includes
Safety Data Sheets We publish more than 79000 safety data sheets that include information on product hazards and precautions to ensure safe use
Product Stewardship Bulletins We issue declarations for customers on regulatory clearances for our products and their end uses
Global Product Strategy Safety Summaries (GPSSS) As a member of the International Council of Chemical Associations (ICCA) we take part in the Global Product Strategy (GPS) voluntary program to improve the safety of chemical products during their use and handling The GPSSS documents summarize information about safe uses and applications of products
In 2018 we answered more than 40000 requests from customers distributors and other stakeholders for regulatory information about our products We continuously review customer feedback to better identify and mitigate potential risks
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 30
PRODUCT STEWARDSHIP THROUGH THE LIFE CYCLE
Raw materials sourcingEvery business function utilizes a global raw material evaluation and approval standard Policies prohibit the use of some substances and restrict the use of others If a safety issue is flagged our procurement teams will not buy the raw materials in question Changes to raw materials or their sources are also reviewed for product safety
ManufacturingOur product stewardship standards help ensure substances are handled properly during manufacturing to prevent harm to our people and contractors We conduct internal audits to confirm regulatory compliance and that risks are managed according to our standards when manufacturing storing and loading our products
Distribution and customer useWe promote safe transport and storage of our products by customers and we work closely with our suppliers carriers and distributors We have standards for equipment used to transport and store products and our logistics compliance team visits customersrsquo sites to help ensure our products are handled safely We communicate safety information to customers through safety data sheets safety bulletins and global product safety strategy summaries
Consumer end-use and disposalCertain end-uses for our products may require review and approval or may be prohibited Compliance information about our products is available on our website and product end-of-life considerations are addressed on safety data sheets
Product portfolio safety assessmentOur product stewardship team is involved at the initial stage of researching and developing new products We assess HSE and product safety risks before new products raw materials or processes are approved for production Product safety aspects are reviewed for each stage of the development process
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
Botlek the Netherlands
REDUCING OUR ENERGY USE AND CO2e IMPACTWe use energy in the form of electricity steam and fuel to manufacture our products Feedstocks and energy represent the largest operating costs our business incurs
Our business faces climate-related risks including potential increased costs to comply with climate change legislation and related regulatory initiatives in Europe and the US In addition climate changes such as drought conditions or increased frequency and severity of hurricanes and floods could have an adverse effect on our assets and operations
To address these risks we are investing in energy reduction projects and working to reduce our carbon emissions
We are also working to meet customer demand for products with a lower carbon
footprint These include polymers made from bio-based feedstock and recycled polymer products
FOCUSING ON ENERGY EFFICIENCYWe use resources as efficiently as possible recovering and reusing waste heat in the chemical manufacturing process and employing best practices in energy management Where feasible our manufacturing sites use combined heat and power cogeneration systems which recover waste heat to produce electricity
A company-wide energy savings management standard sets out requirements and guidance for every site to measure and reduce energy use including a five-year energy improvement plan
SUSTAINABILITY REPORT 2018 I 31
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 32
Energy leaders at each site identify ways to conserve energy supported with best practice guidance on reducing energy costs Our energy excellence program provides training and site visits to continuously improve energy performance In 2018 energy leaders were trained on a new management standard and we introduced energy training for all new hires serving in operational roles
Energy dashboards are in place at many of our sites The dashboards provide operators with real-time data on energy use and targets enabling them to identify energy and cost saving opportunities Energy dashboards typically save 2 of site energy cost We developed new energy dashboards at Wesseling and Botlek sites in 2018
OUR ENERGY PERFORMANCE
The amount of energy we use is closely linked to production levels In 2018 our production increased by 22 compared with 2017 and our global energy use increased by 2 over the same period resulting in a 02 decrease in the energy intensity of our operations compared with 2017
In 2018 we made energy efficiency improvements at many of our sites reducing energy use by a total of 35 million gigajoules Energy saving projects implemented in 2018 include
New steam boilers at our Tuscola Illinois site - 252000 gigajoules
New air pollution control system at our Berre LrsquoEtang France site - 252000 gigajoules
New advanced control system at our Muumlnchsmuumlnster Germany site - 108000 gigajoules
New turbine in the ethylene cracker at our Wesseling Germany site - 126000 gigajoules
Reducing energy loss from steam leaks by working with contractors to improve repairs and maintenance saved over 720000 gigajoules during pilots at our sites in Channelview Texas and Wesseling Germany New guidance on steam leaks and traps will be added to our global energy excellence model for all sites
INVESTING TO SAVE ENERGY IN WESSELING GERMANYIn 2018 we reduced energy use at our Wesseling site in Germany by upgrading and modernizing turbines in an ethylene production unit during a six week turnaround The project demonstrated a significant environmental impact saving approximately 126000 gigajoules of energy in the first full quarter of operation with an associated saving of approximately 10000 metric tons of CO2 per year equivalent to the annual emissions of 5000 German households It also reduced the sitersquos water use because less steam is needed to run the production unit
2018 ENERGY USE AND INTENSITY
2014 2015 2016 2017 20180
150
300
450
600
0
2
4
6
8
10
12
Mil
lion
gig
ajou
les
giga
joul
es p
er M
etri
c to
n of
pro
duct
Wesseling Germany
Energy Use Energy intensity
Baseline
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 33
REDUCING CO2e Reducing carbon dioxide equivalent (CO2e) emissions per metric ton of product is a priority for LyondellBasell We organized a global CO2 team comprised of experts from manufacturing RampD technology and sustainability This team is responsible for identifying capital investments research and development needs and technology requirements to reduce carbon emissions
Our global carbon management strategy targets emission reductions in our production processes and supply chain At our manufacturing sites we are investing in projects to improve reliability and reduce energy consumption installing clean-burning boilers and furnaces recovering and reusing waste heat to produce electricity and introducing lower carbon feedstocks made from renewable biomass and post-consumer waste We are also exploring how we can reduce emissions in our supply chain such as switching to lower carbon intermodal solutions to transport our products
In Europe our operations participate in the European Emissions Trading System (ETS) and we purchase annual emission allowances to meet our obligations
OUR CARBON PERFORMANCEAs with energy use our carbon emissions are closely tied to production In 2018 our global CO2e emissions increased by approximately 2 compared with 2017 due to increased production across our sites However our global carbon emission intensity slightly decreased by 03 in 2018 compared with 2017
DATA SCOPE SOURCES AND METHODOLOGIES ENERGY AND EMISSIONSScope 1 and Scope 2 greenhouse gas (GHG) emissions data is provided for LyondellBasell majority owned or operated manufacturing sites pipelines and large offices Gases in our emission calculations are carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) and we apply the GHG Protocol Corporate Accounting and Reporting Standard methodology
Manufacturing sites collect energy data using an energy tracking system Non-manufacturing sites collect energy data based on invoicing and energy metering The data is converted to standard units of measure and we apply site-specific GHG emission factors based on the production process at each site
GHG emission factors for fuel and steam are calculated for each site based on combustion enthalpies and a mass balance If multiple sites use the same fuel we apply an average emission factor Factors are also reviewed against the American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry (2009) and with the emission factors of other sites to ensure accuracy and consistency Generic conversion factors are used where site-specific factors are unavailable
GHG emission factors for electricity are largely location-based and provided by local suppliers
2014 2015 2016 2017 20180
10
20
30
40
00
02
04
06
08
Global CO2e emissions ndash Scope 1 and 2
Emissions intensity
Scope 1 Direct emissions from sites operated by LyondellBasell
Scope 2 Indirect emissions from external electricity and steam suppliers
Data excludes the newly acquired A Schulman sites
2018 CO2 EMISSIONS
OUR GOALS
Achieve a 15 reduction in CO2e
emissions per ton of product produced by 2030 compared with 2015 levels In addition we are committed to revisit this target as enabling technology evolves in this area
Mil
lion
Met
ric
tons
Met
ric
tons
of
co2e
per
Met
ric
ton
of p
rodu
ct
Baseline
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 34
CIRCULAR STEAM PROJECT TARGETS MAJOR CO2 REDUCTIONS
Working with joint venture partner Covestro
at our shared site in Maasvlakte the
Netherlands we are investing to achieve
significant CO2 emission reductions and
support the Dutch governmentrsquos carbon
reduction targets
The Maasvlakte plant produces propylene
oxide and styrene monomer with the plantrsquos
wastewater currently being incinerated
The circular steam project uses innovative
technology to convert the water-based
waste into energy
The new process will generate steam from
the plantrsquos waste and convert it into energy
for use in the on-site production processes
The waste is divided into two streams The
first stream is biologically treated creating water and biogas The second waste stream containing waste fuels and caustic waters enters a dry incineration process fueled by the newly-created biogas that separates the salts and creates steam for the production process The project is scheduled for completion in 2020
Expected environmental benefits
Annual reduction of 140000 metric tons CO2 emissions
09 petajoule of energy saved (equivalent to 9000 householdsrsquo energy use per year in the city of Breda)
11 million kilograms of salt residue prevented from entering surface water
This project is an important step towards realizing the Dutch ambition of a 49 reduction in CO2 emissions in 2030 The initiative by LyondellBasell and Covestro is an inspiring example of how this can be done even in a very competitive market
Allard Castelein CEO Port of Rotterdam Authority
The Dutch governments support is pivotal to the viability of innovative projects like this Circular Steam Project which will allow us to realize an annual CO2 reduction equal to taking 31000 cars off the roadrdquo
Willemien Terpstra Director Global Co-Products at LyondellBasell
Maasvlakte the Netherlands
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 35
MANAGING ENVIRONMENTAL IMPACTSWe carefully manage a range of environmental impacts beyond energy and greenhouse gas emissions including other emissions to air water use and waste We are granted our license to operate from multiple regulatory authorities that oversee our facilities and we seek to earn the trust of our communities by operating safely and responsibly
Our environmental management system standard part of our Operational Excellence system provides a mechanism for compliance assurance and continuous improvement This extends not only to our employees but also our contractors and suppliers
We constantly monitor and manage environmental risk and are committed to complying with all regulations and permits We aim to operate efficiently which means using valuable resources responsibly producing less waste and generating fewer emissions Because our business is dynamic and subject to change based on production volumes feedstocks and other business factors our environmental metrics are reported in absolute (total) and intensity (rate per ton of product) terms to more clearly reflect our performance
MANAGEMENT SYSTEM CERTIFICATIONSExcluding the sites acquired from A Schulman all of our majority owned and operated sites in the US Europe and Australia are either certified to the International Standard for Environmental Management Systems ISO140012015 or through their compliance with our Operational Excellence requirements have management system elements in place that are ISO14001 certifiable Our sites in Guangzhou and Suzhou China are also ISO140012015 certified and in 2018 we assessed four of our sites in India as we aim to achieve ISO14001 certification for these sites in 2019 Additionally the LyondellBasell sites in Germany France and Spain are certified to the Energy Management Standard ISO500012011 We began to review the management systems in place at A Schulman sites following acquisition in 2018 with the aim of achieving ISO14001 certification or compliance with our Operational Excellence requirements
Suzhou China
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
OTHER EMISSIONS TO AIRWe are dedicated to preventing pollution complying with all laws and the terms of our permits evaluating and adopting appropriate pollution controls and closely monitoring and controling our emissions Since 2010 we have significantly reduced our absolute emissions to air and improved the intensity of emissions compared with production for NOx SOx VOCs and PM
Nitrogen Oxides (NOX) NOX is a by-product of combustion and is generated while burning fuels to produce heat steam and electricity Boilers and furnaces in our chemical and refining operations are the source of most of our NOX emissions In 2018 our NOX emissions decreased by 3 to 7841 metric tons due to use of improved clean-burning technologies at our sites
Sulfur Oxides (SOX) In our operations SOX emissions come from burning fuel which contains small amounts of sulfur and from the process of removing sulfur from fuel products at our Houston Texas refinery In 2018 our SOX emissions totaled 1354 metric tons representing a 15 decrease from 2017 This was due to increased use of natural gas instead of liquid fuel at our Berre LrsquoEtang facility in France and lower emissions from the sulfur recovery unit at the Houston refinery
Volatile Organic Compounds (VOCs) VOCs are associated with the chemicals and fuels we handle and produce and are released into the atmosphere during chemical and fuel production VOCs can be released through tiny leaks from pump seals valves and other equipment We have extensive programs in place to identify and repair small leaks including using infrared camera technology Our VOC emissions decreased by approximately 6 to 7636 metric tons in 2018 due to technology improvements at our Berre LrsquoEtang facility in France and Chocolate
2010 2011 2012 2013 2014 2015 2016 2017 20180
60
120
180
240
300
EMISSIONS TO AIR INTENSITY
VOC intensity
NOx intensity
SOx intensity
CO intensity
PM intensity
2010 2011 2012 2013 2014 2015 2016 2017 20180
2000
4000
6000
8000
10000
EMISSIONS TO AIR
Sum of VOCs
Sum of NOx
Sum of SOx
Sum of CO
Sum of PM
Met
ric
tons
Met
ric
tons
per
Mil
lion
Met
ric
tons
of
prod
uct
SUSTAINABILITY REPORT 2018 I 36
Bayou plant in Texas where controls were installed on a fluidized bed dryer vent
Carbon Monoxide (CO) CO is produced when fuels are burned to produce heat steam and electricity The majority of our CO emissions come from burning natural gas at our chemical and refining operations From 2017 to 2018 our CO emissions decreased slightly to 5285 metric tons
Particulate Matter (PM) PM refers to small airborne particulates emitted during production primarily from cooling towers and burning fuel Since 2012 we have worked to reduce these
emissions by improving heaters and furnace operations Our total PM emissions decreased by approximately 8 to 1197 metric tons compared with 2017 due to equipment upgrades such as the cooling towers at our Morris facility in Illinois
Ozone Depleting Substances (ODS)In 2018 we emitted 74 kg of ODS a small increase from 59 kg in 2017 We measure and report ODS as kg of CFC-11 equivalent and use emission factors based on the Montreal Protocol
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 37
WATER USEWater is an important resource we depend
on in our operations We use water primarily
for cooling and steam production Our
refining and manufacturing sites reuse
water to reduce the amount of ground and
freshwater withdrawn The majority of our
large sites use recirculating water systems
for cooling in order to limit our freshwater
intake
More than half of the water we use is
surface water and the remainder is mostly
groundwater The source of water depends
on the location of the facility We use a small
amount of potable water and source recycled
water from some industrial providers located
close to our manufacturing sites Some of
our sites use sea water for cooling while
others draw water from freshwater sources
such as rivers aquifers or local water
supplies
We manage water in accordance with
permitted limits for discharge destination and
water quality and our Operational Excellence
systems support ongoing compliance Many
of our larger sites operate their own waste
water treatment facilities which allows for
increased control over our water efficiency
and quality of our discharges
This year we are reporting additional
indicators water intake and water discharge
to build a better understanding of our
company water profile We also clarified our
reporting criteria and definitions for water
consumption
In 2018 water consumption decreased by 2
compared with 2017 and water consumption
intensity decreased by 4 in the same period
Some of our sites are located in areas of
lower rainfall or dense population In order
to evaluate how we impact the local water
availability and the local community we will
conduct a water stress survey in 2019 This
will improve our understanding of current and
future water needs and enable us to prioritize
areas to improve our water impact
WATER USE 2018
Water intake is the total water pumped piped or otherwise brought on site for use in manufacturing and related activities
Water discharge is the total water put back into water bodies through permitted or otherwise allowable methods This includes remediation activities and water supplied for offsite use
Water consumption refers to water that is not returned to the source location either due to discharge to another water location or due to evaporation or other types of water loss
For more information see data tables in the back of this report
Fresh Surface Groundwater Potable SeawaterBrackisch Other Use
WATER CONSUMPTION BY SOURCE
68
20
6 33
WATER DISCHARGE BY DESTINATION
31
13
155
WATER INTAKE BY SOURCE
Total water consumption108 million m3
46
11
9
30
4
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 38
WASTE
We take every opportunity to avoid generating waste reusing it in our operations wherever possible We look for recovery and recycling opportunities and evaluate co-products for reuse to avoid creating waste
Most of the waste we produce is dilute hazardous liquid waste from chemical plant operations Our operations also produce non-hazardous solid waste including general plant trash and construction and demolition debris Waste disposal is managed in accordance with all applicable regulations In 2018 67 of waste was disposed to land including landfill and permitted injection wells
Project and construction work can increase waste volumes In 2018 the total volume
of waste we produced increased by 9
Hazardous waste increased by 2 partly
due to an increase in waste fuels disposed
of by third parties at our Maasvlakte site
in the Netherlands Non-hazardous landfill
waste increased significantly by 76 to
237000 metric tons due to maintenance or
construction work at some sites including
LaPorte and Corpus Christi in Texas
At our Maasvlakte site we advanced
a project to significantly reduce waste
and generate steam on-site by 2020 in
partnership with Covestro By reusing waste
to generate high-pressure steam the site
is projected to reduce waste streams and
prevent the release of 11 million kilograms
of salt residue into surface water
ENVIRONMENTAL INCIDENTS Although we work hard to reduce our environmental impact sometimes incidents can occur We manage our environmental obligations and work diligently to investigate each incident and understand the cause We then develop action items and share learnings throughout the organization to prevent future incidents
In 2018 the total number of environmental incidents increased by approximately 19 compared with 2017 This was partly due
to the high number of site turnarounds in
2018 and unusually cold weather leading
to freezing conditions in the US Gulf
Coast Despite an increase in the number of
incidents the total quantity of associated
emissions declined by 51 in 2018
compared with 2017 and there were zero
environmental incidents at 65 of our sites
In 2018 we paid $984000 in penalties to
environmental health and safety regulatory
authorities2014 2015 2016 2017 20180
20
40
60
80
100
120
ENVIRONMENTAL INCIDENTS(Categorized as level 2 incidents and above)
We classify environmental incidents on a scale of 0 to 5 with Level 5 having the highest impact
Land Disposal Incineration Energy Recovery Other Recycle Reclaimed
WASTE BY TYPE 2018
Non-Hazardous
Waste
83
14111
Hazardous Waste
68
18
12
11
For more information see data tables in the back of this report
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
Suzhou China
DEVELOPING OUR PERFORMANCE-DRIVEN TEAMOur success as a company is tied to the passion knowledge and talent of our global team To achieve our vision of being the best operated and most valued company in the industry we must attract top performers and equip them with the tools needed to continuously grow and leverage their potential We believe in honesty diversity and fairness and we focus on creating a work environment that is safe respectful and inspires employees to strive for excellence
Our mission vision and values guide our daily work activities and drive our business success We recognize individuals cannot succeed alone we believe in the power of many and place a strong emphasis on teamwork We pay a fair wage based on country-specific conditions and we reward performance based on personal team and company results
We are proud of the LyondellBasell women who have excelled in science and engineering and are heading our manufacturing plants advancing our engineering teams achieving breakthrough discoveries in our RampD labs and serving on our Board of Directors But we have more work to do to create the inclusive environment we envision We are committed to transforming our industry and our corporate culture in order to attract and retain bold creative minds from a diverse populationrdquo
Darleen CaronExecutive Vice President and Chief Human Resources Officer LyondellBasell
SUSTAINABILITY REPORT 2018 I 39
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 40
As of December 31 2018 we employed approximately 19450 full-time and part-time employees around the world including employees acquired from A Schulman in August 2018 Of this total 8900 were located in North America and another 8100 were located in Europe The remainder of our employees are in other global locations Less than 2 of our employees are part-time
In 2018 approximately 900 of our employees in North America were represented by labor unions The vast majority of our employees in Europe and South America were subject to staff councils or works council coverage or collective bargaining agreements
We engage in open and on-going dialogue with employees and their representatives to ensure a proper balance between the best interests of the company and its employees In a number of our locations we partner with employee representatives on initiatives such as health and safety
We use the services of contractors in the routine operation of our business and we require that all contractors adhere to our Operational Excellence standards and GoalZERO commitment
PROMOTING DIVERSITY AND INCLUSION1
A talented and diverse workforce is a key competitive advantage We believe employees of different genders and from many different cultural linguistic and national backgrounds provide us with valuable perspectives and different ideas resulting in better decision-making and more creative solutions
NUMBER PERCENTAGE
Minority 1920 29
Non-Minority 4632 69
Other 56 08
Not disclosed 83 12
RACEETHNICITY OF EMPLOYEESAs defined by the US Equal Employment
Opportunity Commission
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
78
22
NEW HIRES BY GENDER Female Male
EMPLOYEES BY GENDER
17
83
Rotterdam The Netherlands
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 41
EMPLOYEE DATA BY AGE GROUP1
AGE
18-29 30-49 50+
40
51
9
New hires by age group
49
39
12
Employees by age group
17
43
40Attrition by age group
1 Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
DIVERSITY OF GOVERNANCE BODIESFor more information on our Board of Directors including nationality qualifications and compensation refer to the 2018 Annual Proxy Statement
GENDER AND AGE COMPOSITION OF BOARD OF DIRECTORS
50s 60s 70s
6
5
2
525Female
75Male
3Directors
are women
We are proud many employees have been part of the LyondellBasell family for all or most of their careers We also recognize in certain areas such as our manufacturing plants an aging employee population presents a challenge To ensure we are properly staffed for the future we employ a variety of approaches to identify and develop talent within the organization while simultaneously using targeted recruiting strategies to bring new employees into the company
We are also focused on appropriately capturing the valuable knowledge of our long-tenured employees Our Technology amp Knowledge Management system ensures employees benefit from each otherrsquos experience no matter where they are located in the world This suite of tools brings together best practices compiled by internal subject matter experts on operations processes systems and other areas critical to our business
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 42
LISTENING TO OUR PEOPLE
The voice of our employees informs many of the decisions made at LyondellBasell We seek and receive input from our employees in many ways including through the biennial employee engagement survey Approximately 70 of employees responded to the 2018 survey which was conducted prior to the A Schulman acquisition
Our employees reported that they were satisfied with LyondellBasell as a place to work (82 of respondents) feel proud to work for LyondellBasell (80 of respondents) are excited about the companyrsquos future (79 of respondents) and would recommend LyondellBasell as a good place to work (79 of respondents)
Although our employees scored the company very positively in most areas of the survey our ambition and determination to ensure LyondellBasell remains a great place to work go hand in hand with demonstrating the ability to listen and act on our employeesrsquo feedback Employees pointed to the need for more individual learning and development opportunities and also felt the companyrsquos performance management system as a whole could be more meaningful
As a result we developed a more holistic approach to performance management one that asks leaders and the employees they manage to engage in continuous performance conversations In addition to equipping leaders with tools through the People Leaders Development Academy (see feature story) we launched a series of webinars focusing on the shift to continuous performance conversations This training attended by 950 leaders worldwide provided tips tools and practice to make these conversations more meaningful
Getting to know our employees and teams is the foundation of a collaborative and strong culture Shifting to continuous performance conversations allows employees and their managers to maintain open channels of communication and provides opportunities for real-time feedback To ensure our employees have the right systems and tools in place to support this cultural shift we designed a new online performance management system in 2018
THE LYONDELLBASELL ACADEMYLaunched in 2018 LyondellBasell Academies are the umbrella under which we bring together enterprise-wide learning and development opportunities for our employees
Our first academies focused on leadership development with the launch of the People Leaders Development Academy (PLDA) The PLDA equips those entrusted with leading our people with the skill sets and mindset necessary to be agile accountable collaborative and successful leaders This intensive development program focuses on what it means to be a leader improves self-awareness and personal effectiveness and helps participants discover new ways to improve outcomes for themselves and their teams while driving cultural change and building accountability Approximately 270 leaders are expected to complete the program in 2019 We also launched the Global Leaders Academy which brings the most-senior leaders in the company together to focus on building a winning leadership culture throughout the organization Additionally we created two academies focused on developing high-potential employees
Fostering a Community of Learning
Channelview Complex Texas
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 43
ADVANCING YOUNG TALENT IN EUROPE Our Young Engineers Program welcomes the best young talent to our business to develop their engineering and leadership skills and prepare them to join our European workforce
Aimed at recent university graduates with technical talent the program develops young peoplersquos management and technical skills along with training on project management and personal effectiveness Graduates are hired in the Netherlands and are assigned to at least three manufacturing sites across our European operations over the duration of the program As part of the LyondellBasell Engineer University (Engineer U) the young engineers receive on-the-job and formal training Mentors provide coaching professional insight and advice to help participants develop their skills and set career goals
TRAINING AND DEVELOPMENT Employee growth and development are key elements supporting our vision of superior performance We provide development opportunities for our employees through on-the-job experiences learning from others and in-class and online learning
In 2018 we offered more than 376000 hours of training to our employees through both in-person classes and our online learning management system Operators and frontline supervisors received a total of 342700 hours of training while supervisors managers and executives participated in more than 32500 hours of training
Average Training Hrsperson
Professional 173
Technical 245
Administrative 84
Wesseling Germany
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
Houston Texas
ADVANCING OUR COMMUNITIESBeing a responsible good neighbor in the communities in which we operate is embedded in our mission We provide jobs that create economic value and we hire locally where possible We also support economic growth and job creation throughout our supply chain by purchasing goods and services locally
Additionally we contribute to charities in cash or in-kind and our employees volunteer thousands of hours to good causes each year
In the last three years we donated more than $9 million and 46000 volunteer hours to charities around the world to improve education promote good health protect the environment and support first responders
In 2018 we donated to more than 460 charities including matching contributions and put special focus on education
Each year we support two flagship community campaigns
Global Care Day For the past 19 years LyondellBasell employees worldwide along with their families and friends have devoted one day to making a difference in their communities by volunteering
United Way Each year our US employees participate in local campaigns to support the United Wayrsquos goal of building strong communities In 2018 LyondellBasell held fundraising campaigns at 28 sites across the country and donated a total of $23 million to the organization LyondellBasell has been a top corporate donor to the United Way of Greater Houston for 30 consecutive years
SUSTAINABILITY REPORT 2018 I 44
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 45
BAYPORT TEXASForced to cancel this project in 2017 due to Hurricane Harvey employees followed through with their commitment to the community and built an outdoor hockey rink and tennis wall at a local community park
HO CHI MINH CITY VIETNAMVolunteers removed plastic waste and other trash from a local beach using the opportunity to teach children and families about the importance of protecting the ocean
DALIAN CHINA Employees donated hundreds of kilos of basic food and personal care products such as rice flour noodles soap and toothbrushes to residents in a nursing home
TUSCOLA ILLINOISColleagues maintained flower beds and painted flowerpots to beautify the grounds at Tuscola Healthcare for the enjoyment of those in the elder care facility
MELBOURNE AUSTRALIAFareshare Australia Incrsquos mission is to rescue and distribute food to those in need With the help of our volunteers 1200 vegetable rolls and 1000 quiches were prepared for distribution to charities and those in need at the Fareshare Foodbank
FERRARA ITALYVolunteers joined children with autism and their families in planting trees at the Dalla Terra alla Luna facility The organization cares for children with autism providing a safe and respectful environment where they can play and learn
HOUSTON TEXASEmployees and their families planted 65 trees and 100 seedlings at Burnett Elementary School The trees provide shade for the playground and reduce energy use Volunteers also built 150 bikes that will be used as awards for students who achieve their reading goals
RAYONG THAILANDVolunteers rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park helping to advance the rapid growth of trees mushrooms rattan and bamboo used by wildlife and the surrounding community
AURANGABAD INDIAThe mission of the Prayag Youth Foundation is to protect the environment and increase tree planting Volunteers partnered with the organization to plant 100 native species including Pipal Banyan Neem Karanja and Bakul at the Goga Baba Hill base
GLOBAL CARE DAY 2018 HIGHLIGHTS FROM AROUND THE WORLDIn 2018 approximately 3620 employees from 67 LyondellBasell sites volunteered more than 17680 hours for Global Care Day
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 46
SAFETY PERFORMANCE 2014 2015 2016 2017 2018
TOTAL RECORDABLE INJURY RATE (per 200000 hours workedemployees and contractors)
LyondellBasell Total Recordable Injury Rate (TRIR) 023 022 021 021 018
American Chemistry Council Industry Average 071 065 057 063 065
Includes A Shulman sites as of August 21st 2018
PROCESS SAFETY INCIDENT RATE 0011 0022 0032 0030 0018
Includes A Schulman sites as of August 21 2018 (Represents number of Level 3 and above process safety incidents per 200000 hours worked We classify process safety incidents on scale of 0 to 5 with Level 5 having the highest impact)
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
ENERGY USE (million GiGaJoules) 392 411 382 408 416
ENERGY INTENSITY (GiGaJoules per metric ton of product) 1026 1022 999 1003 1002
GREENHOUSE GAS EMISSIONS (million metric tons of co2e)
Scope 1 emissions 133 141 135 139 143
Scope 2 emissions 85 87 83 90 91
Total emissions 218 228 218 229 234
GREENHOUSE GAS INTENSITY (metric tons of co2e per metric ton of product) 0572 0566 0571 0564 0562
ENVIRONMENTAL INCIDENTS (cateGorized as level 2 incidents or above)
Number of incidents 96 93 99 79 94
OUR PERFORMANCE DATA
2010 2011 2012 2013 2014 2015 2016 2017 2018
AIR EMISSIONS absolute (metric tons)
VOCs 9479 8675 8036 7529 7510 8117 8293 8098 7636
NOx 9391 8785 8185 8015 8117 8054 7327 8057 7841
CO 5472 4619 4634 4582 4608 5382 5342 5301 5285
SOx 7758 5394 3154 2154 1861 1666 1921 1589 1354
PM 2558 2134 1907 1425 1419 1352 1251 1305 1197
AIR EMISSIONS intensity (metric tons per million metric tons of product)
VOC intensity 261 234 219 195 197 202 217 199 184
NOx intensity 259 237 223 208 212 200 192 198 189
CO intensity 151 124 126 119 121 134 140 130 127
SOx intensity 214 145 86 56 49 41 50 39 33
PM intensity 70 57 52 37 37 34 33 32 29
OZONE DEPLETING SUBSTANCES (kiloGrams of cfc-11 equivalent) 59 74
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
SUSTAINABILITY REPORT 2018 I 47
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER INTAKE BY SOURCE (million m3)
Fresh Surface Water 988 1090
Groundwater 264 264
Potable Water 90 88
Seawaterbrackish water 700 700
Other Water Use 208 215
Sum of Water Intake (Total) 2250 2357
WATER DISCHARGE BY DESTINATION (million m3)
Fresh Surface Water 298 420
Groundwater - -
Potable Water 04 06
Seawaterbrackish water 764 740
Other Water Use 180 185
Sum of Water Discharge (Total) 1246 1351
ENVIRONMENTAL PERFORMANCE 2017 2018
WATER CONSUMPTION BY SOURCE (million m3)
Fresh Surface Water 804 732
Groundwater 171 215
Potable Water 63 64
Seawaterbrackish water 33 33
Other Water Use 38 40
Sum of Water Consumption (Total) 1109 1084
WATER QUALITY (metric tons)
Total Suspended Solids (TSS) 1849 1771
Biological Oxygen Demand (BOD) 576 596
WATER INTENSITY (m3 water per tons of product)
Water consumption intensity 273 261
ENVIRONMENTAL PERFORMANCE 2014 2015 2016 2017 2018
WASTE BY TYPE (thousand metric tons)
Non-Hazardous Waste Production (t) 134 139 155 135 237
Hazardous Waste Production (t) 1197 1238 1237 1266 1284
Total 1331 1377 1392 1401 1521
WASTE INTENSITY (metric tons per ton of product)
Non-Haz Waste Intensity (t) 00035 00034 00041 00033 00057
Hazardous Waste Intensity (t) 00313 00308 00323 00311 00309
Total 00348 00342 00364 00344 00366
SOCIAL PERFORMANCE
EMPLOYEES BY REGION
Number of legacy LyondellBasell
employees as of December 31 2018
Number of employees as of December 31 2018
including employees acquired from A Schulman
North America 6725 8900
Europe 6347 8100
Rest of the world 1158 2450
Total 14230 19450
EMPLOYEES BY GENDER
Female 2488
Male 11742
Total 14230
NEW HIRES BY GENDER
Female 262
Male 947
Total 1209
RACEETHNICITY OF EMPLOYEES (us only) as defined by the us equal eMployMent opportunity coMMission
American Indian or Alaskan Native 22
Asian 339
Black or African American 575
HispanicLatino 976
Native Hawaiian or Other Pacific Islander 8
Two or More Races 56
White 4632
Not disclosed 83
Total 6691
EMPLOYEES BY AGE GROUP
18-29 30-49 50+
1705 7039 5486
NEW HIRES BY AGE GROUP
18-29 30-49 50+
485 611 112
ATTRITION BY AGE GROUP
18-29 30-49 50+
129 327 306
AVERAGE TRAINING HOURS per eMployee per job type
JOB TYPE Average hours per person
Professional 173
Technical 245
Administrative 84
Previously reported 2017 water consumption data has been revised to reflect changes in our water reporting definitions with the addition of new intake and discharge indicators
Data as of December 31 2018 based on a total of 14230 legacy LyondellBasell employees and excluding employees we acquired from A Schulman in August 2018
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
LONDON4th Floor One Vine StreetLondon W1J 0AHUnited KingdomTel +44 207 220 2600
ROTTERDAMDelftseplein 27E3013 AA RotterdamNetherlandsTel +31 10 275 5500
HOUSTONLyondellBasell Tower Ste 3001221 McKinney StreetHouston TX 77010Tel +1 713 309 7200sustainabilitylybcom
HONG KONG32F Dorset HouseTaikoo Place979 Kingrsquos RoadQuarry Bay Hong KongChinaTel +852 2577 3855
wwwlyondellbasellcomFORTUNE and The Worldrsquos Most Admired Companies are registered trademarks of Time Inc and are used under license From FORTUNE Magazine February 1 2018 copy2018 Time Inc Used under licenseFORTUNE and Time Inc are not affiliated with and do not endorse products or services of LyondellBasell
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